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Live Nation (LYV) Stock Up on Q1 Earnings & Revenue Beat

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Live Nation Entertainment, Inc. (LYV - Free Report) reported first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Revenues surpassed the consensus estimate for the fourth straight quarter. Following the results, LYV stock increased 6.6% in the after-hour trading session on May 4.

Live Nation Entertainment has been benefiting from pent-up demand for live events and robust ticket sales. It continues to benefit from robust performance of Ticketmaster and an increase in fan spending. In first-quarter 2023, 19 million fans attended shows across 45 countries and more than 145 million tickets were sold.

Earnings & Revenues

In first-quarter 2023, the company reported adjusted loss per share of 25 cents, narrower-than the Zacks Consensus Estimate of a loss of 45 cents. In the prior-year quarter, LYV incurred adjusted loss per share of 39 cents.

Revenues amounted to $3,127.4 million, beating the Zacks Consensus Estimate of $2,241 million. The top line increased 73% year over year.

Segmental Discussion

Concerts: The segment’s revenues totaled $2,281.2 million, up 89% year over year. Adjusted operating earnings were $0.8 million against a loss of $49.2 million in the year-ago quarter. Total estimated events increased to 19,509 in first-quarter 2023, up from the prior-year’s 10,898 events.

Ticketing: The segment’s revenues amounted to $677.7 million, up 41% from the prior-year quarter. Adjusted operating income increased to $271.1 million from $206.2 million reported in the prior-year quarter. In first-quarter 2023, total estimated tickets sold rose to 145,779,000.

Sponsorship & Advertising: The segment’s revenues were $170.1 million, up 47% from the year-ago quarter. Adjusted operating income rose to $95.4 million, up 37% year over year.

Other Financial Information

Cash and cash equivalents as of Mar 31, totaled $6,992 million compared with $5,606.5 million as of Dec 31, 2022. Goodwill in the first quarter was $2,577.3 million compared with $2,529.4 million at 2022 end. Total long-term debt increased to $6,547.9 million compared with $5,253.5 million as of Dec 31, 2022.

In first-quarter 2023, net cash provided by operating activities was $1,155.8 million compared with $1,198.3 million reported in the prior-year quarter.

Zacks Rank & Key Picks

Live Nation Entertainment currently carries a Zacks Rank #3 (Hold).

Here we present some better-ranked stocks from the Zacks Consumer Discretionary sector.

Boyd Gaming Corporation (BYD - Free Report) currently sports a Zacks Rank #1 (Strong Buy). BYD has a trailing four-quarter earnings surprise of 13.7%, on average. The stock has increased 30.6% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BYD’s 2023 sales and EPS indicates rises of 1.4% and 2.8%, respectively, from the year-ago period’s levels.

Crocs, Inc. (CROX - Free Report) carries a Zacks Rank #2 (Buy). CROX has a trailing four-quarter earnings surprise of 19.6%, on average. The stock has surged 71.8% in the past six months.

The Zacks Consensus Estimate for CROX’s 2023 sales and EPS implies improvements of 13.1% and 2.8%, respectively, from the year-ago period’s levels.

PlayAGS, Inc. (AGS - Free Report) carries a Zacks Rank #2. AGS has a trailing four-quarter earnings surprise of 133.3%, on average. The stock has declined 24.7% in the past six months.

The Zacks Consensus Estimate for AGS’ 2024 sales and EPS suggests increases of 3% and 1,873.3%, respectively, from the year-ago period’s levels.


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