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Live Nation (LYV) Q2 Earnings Beat Estimates, Revenues Miss

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Live Nation Entertainment, Inc. (LYV - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate while revenues missed the same. On the other hand, the bottom and top lines grew year over year.

The results of the company reflect robust global fan demand for live events resulting in increased ticket sales at all price points. Venue Nation’s strategic investments in hospitality and infrastructure also bode well as more attendees maximized their onsite experiences. LYV continues to benefit from the solid performance of Ticketmaster and an increase in fan spending.

During the quarter, approximately 39 million fans attended 14,678 live events. The company witnessed the sale of more than 1 million tickets in the newly launched markets of Brazil and Peru, along with expansion in South Africa.

Live Nation anticipates continued growth, aiming for double-digit growth in adjusted operating income in 2024, with increased prospects through 2025.

Earnings & Revenues

The company reported adjusted earnings per share (EPS) of $1.03, which surpassed the Zacks Consensus Estimate of 98 cents by 5.1%. In the year-ago quarter, the company reported an adjusted EPS of $1.02.

Revenues amounted to $6.02 billion, marginally missing the consensus mark of $6.04 billion by 0.3%. The top line increased 7% year over year from $5.63 billion.

Segmental Discussion

Concerts: The segment’s revenues totaled $4.99 billion, up 8% year over year. Our model predicted the metric to climb 7.8% year over year. Adjusted operating income was $270.7 million, up 61% from the year-ago figure. Total estimated events rose to 14,678, up from the prior year’s figure of about 12,241 events. Our model predicted total events to be 13,588.

Ticketing: Segmental revenues amounted to $730.7 million, up 3% from the prior-year quarter. Our model estimated the metric to increase 9.4% year over year. Adjusted operating income was $292.5 million, flat year over year.  The total estimated number of tickets sold rose to 153,595 from 150,115 reported in the prior-year quarter.

Sponsorship & Advertising: Revenues from this segment totaled $312.2 million, up 3% from the year-ago quarter’s figure. We estimated the metric to jump 11.5% year over year. Adjusted operating income was $222.6 million, up 10% year over year.

Other Financial Information

Live Nation's cash and cash equivalents as of Jun 30, 2024, totaled $6.4 billion, up from $6.23 billion as of Dec 31, 2023. At the end of the second quarter, goodwill was $2.66 billion compared with $2.69 billion at the end of 2023. Net long-term debt decreased to $5.08 billion from $5.46 billion as of Dec 31, 2023. As of the quarter's end, the company’s short-term obligations were $1.14 billion.

At the end of the first six months of 2024, net cash provided by operating activities was $1.4 billion compared with $1.65 billion reported in the year-ago period.

Zacks Rank & Recent Consumer Discretionary Releases

Live Nation currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Boyd Gaming Corporation (BYD - Free Report) reported second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The company’s top line increased year over year.

Segment-wise, the Las Vegas Locals market showed improvement sequentially. Its business in this segment achieved market share growth. Additionally, the company experienced strong growth in its Downtown Las Vegas operations and maintained stable performance in Midwest and South operations.

Hasbro, Inc. (HAS - Free Report) reported second-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Despite a year-over-year revenue decline, earnings increased on the back of a favorable business mix and improved operations.

Net revenues from the Consumer Products and Entertainment segment decreased 20% year over year to $524.5 million and 90% year over year to $18.8 million, respectively. Nonetheless, Wizards of the Coast and Digital Gaming segment’s revenues totaled $452 million, up 20% from $375.6 million in the year-ago quarter. The upside was driven by a higher digital licensing revenue mix and lower royalty expenses.

Royal Caribbean Cruises Ltd. (RCL - Free Report) reported impressive second-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The bottom and top lines increased on a year-over-year basis. RCL benefited from stronger pricing on close-in demand and continued strength in onboard revenues.

RCL is focused on driving strong shareholder returns by delivering a lifetime of vacations and capturing a larger share of the rapidly growing $1.9 trillion global vacation market. It focuses on disciplined expansion, moderate yield growth and cost control to achieve the same. Furthermore, during the quarter, the company achieved its Trifecta financial goals (18 months ahead of schedule), strengthened its balance sheet and reinstated dividends, thereby enhancing shareholders’ value.


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