Back to top

Image: Bigstock

Live Nation (LYV) Up 0.8% Since Last Earnings Report: Can It Continue?

Read MoreHide Full Article

It has been about a month since the last earnings report for Live Nation (LYV - Free Report) . Shares have added about 0.8% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Live Nation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Live Nation Earnings Beat Estimates, Revenues Miss

Live Nation Entertainment 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. 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.

Ticketing: Segmental revenues amounted to $730.7 million, up 3% from the prior-year quarter. 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. 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.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -12.12% due to these changes.

VGM Scores

Currently, Live Nation has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Live Nation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Live Nation belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Royal Caribbean (RCL - Free Report) , has gained 6.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.

Royal Caribbean reported revenues of $4.11 billion in the last reported quarter, representing a year-over-year change of +16.7%. EPS of $3.21 for the same period compares with $1.82 a year ago.

Royal Caribbean is expected to post earnings of $4.98 per share for the current quarter, representing a year-over-year change of +29.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.

Royal Caribbean has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Royal Caribbean Cruises Ltd. (RCL) - free report >>

Live Nation Entertainment, Inc. (LYV) - free report >>

Published in