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Factors Setting the Tone for Live Nation's (LYV) Q1 Earnings
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Live Nation Entertainment, Inc. (LYV - Free Report) is scheduled to report first-quarter 2024 results on May 2, 2024, after market close. In the last reported quarter, the company registered a negative earnings surprise of 8%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line is pegged at a loss of 22 cents per share, indicating an improvement of 12% from a loss of 25 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at approximately $3.3 billion, suggesting an increase of 5.4% from the year-ago quarter’s reported figure.
Live Nation Entertainment, Inc. Price and EPS Surprise
Let's look at how things have shaped up in the quarter.
Factors at Play
Live Nation’s first-quarter top line is likely to have increased year over year courtesy of heightened demand for live events, a strong show pipeline and higher ancillary revenue from controlled venues. This and strong contributions from the amphitheater business are likely to have aided the company’s performance in the to-be-reported quarter.
LYV’s focus on enhancing venues through its Venue Nation division is anticipated to have contributed to higher Adjusted Operating Income (AOI) per fan, with more shows in owned and operated venues and improved fan monetization initiatives.
The implementation of dynamic pricing strategies through Platinum ticketing is likely to have supported Live Nation's first-quarter revenue growth. While the international rollout is still in its early stages, there's significant growth potential, with plans to expand into new markets. In the United States, dynamic pricing strategies are being implemented across various tiers of shows, reflecting a multi-year opportunity for top-line and bottom-line growth.
For first-quarter 2024, our model predicts concerts and ticketing revenues to increase 5.4% and 2.5% year over year to $2.4 billion and $0.7 billion, respectively. We expect sponsorship and advertising revenues to increase 20.2% year over year to $204.5 million.
However, increased labor-hiring costs, artist activation costs and other operational expenses are likely to have hurt LYV’s bottom line in the quarter to be reported. For the quarter to be reported, our model estimates a 5.8% year-over-year rise in direct operating expenses to $2.2 billion.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat Live Nation this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Live Nation has an Earnings ESP of -21.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #5 (Strong Sell).
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
FOXA is expected to register a 23.4% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 71.1%.
DraftKings Inc. (DKNG - Free Report) currently has an Earnings ESP of +12.65% and a Zacks Rank of 3.
DKNG’s earnings for the to-be-reported quarter are expected to increase 67.8%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, with a negative surprise of 57.1% on average.
Funko, Inc. (FNKO - Free Report) currently has an Earnings ESP of +6.90% and a Zacks Rank of 3.
FNKO’s earnings for the to-be-reported quarter are expected to increase 40.8%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 42.8%.
Image: Bigstock
Factors Setting the Tone for Live Nation's (LYV) Q1 Earnings
Live Nation Entertainment, Inc. (LYV - Free Report) is scheduled to report first-quarter 2024 results on May 2, 2024, after market close. In the last reported quarter, the company registered a negative earnings surprise of 8%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line is pegged at a loss of 22 cents per share, indicating an improvement of 12% from a loss of 25 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at approximately $3.3 billion, suggesting an increase of 5.4% from the year-ago quarter’s reported figure.
Live Nation Entertainment, Inc. Price and EPS Surprise
Live Nation Entertainment, Inc. price-eps-surprise | Live Nation Entertainment, Inc. Quote
Let's look at how things have shaped up in the quarter.
Factors at Play
Live Nation’s first-quarter top line is likely to have increased year over year courtesy of heightened demand for live events, a strong show pipeline and higher ancillary revenue from controlled venues. This and strong contributions from the amphitheater business are likely to have aided the company’s performance in the to-be-reported quarter.
LYV’s focus on enhancing venues through its Venue Nation division is anticipated to have contributed to higher Adjusted Operating Income (AOI) per fan, with more shows in owned and operated venues and improved fan monetization initiatives.
The implementation of dynamic pricing strategies through Platinum ticketing is likely to have supported Live Nation's first-quarter revenue growth. While the international rollout is still in its early stages, there's significant growth potential, with plans to expand into new markets. In the United States, dynamic pricing strategies are being implemented across various tiers of shows, reflecting a multi-year opportunity for top-line and bottom-line growth.
For first-quarter 2024, our model predicts concerts and ticketing revenues to increase 5.4% and 2.5% year over year to $2.4 billion and $0.7 billion, respectively. We expect sponsorship and advertising revenues to increase 20.2% year over year to $204.5 million.
However, increased labor-hiring costs, artist activation costs and other operational expenses are likely to have hurt LYV’s bottom line in the quarter to be reported. For the quarter to be reported, our model estimates a 5.8% year-over-year rise in direct operating expenses to $2.2 billion.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat Live Nation this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Live Nation has an Earnings ESP of -21.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #5 (Strong Sell).
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Fox Corporation (FOXA - Free Report) has an Earnings ESP of +8.73% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
FOXA is expected to register a 23.4% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 71.1%.
DraftKings Inc. (DKNG - Free Report) currently has an Earnings ESP of +12.65% and a Zacks Rank of 3.
DKNG’s earnings for the to-be-reported quarter are expected to increase 67.8%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, with a negative surprise of 57.1% on average.
Funko, Inc. (FNKO - Free Report) currently has an Earnings ESP of +6.90% and a Zacks Rank of 3.
FNKO’s earnings for the to-be-reported quarter are expected to increase 40.8%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 42.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.