Shares of Madison Square Garden Entertainment (MSGE) are soaring 5.81% in pre-market trading on Tuesday following the release of the company's fiscal 2025 third-quarter results. The entertainment giant reported better-than-expected revenue and adjusted EBIT, despite missing earnings per share estimates.

For the quarter ended March 31, 2025, MSGE reported revenue of $242.5 million, surpassing the IBES estimate of $231.1 million. This represents a 6% increase compared to the same period last year. The company's adjusted EBIT (earnings before interest and taxes) came in at $57.9 million, significantly exceeding the IBES estimate of $25 million.

However, the company's earnings per share of $0.17 fell short of analysts' expectations of $0.27. Despite this, investors appear to be focusing on the strong top-line growth and operational efficiency demonstrated by the robust adjusted EBIT figure. The positive reaction suggests that the market is optimistic about MSGE's ability to capitalize on the recovering live entertainment industry and its strategic positioning in key markets.