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Live Nation Q3 Earnings Surpass Estimates, Revenues Miss

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Live Nation Entertainment, Inc.'s (LYV - Free Report) third-quarter 2024 earnings surpassed the Zacks Consensus Estimate but revenues missed the same. The top and bottom lines declined from the prior-year quarter’s level.

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Following the results, the company shares gained 7.6% during the after-hours trading session yesterday. Positive investor sentiments were witnessed as the company shared its outlook on expanding growth opportunities, driven by an unprecedented summer concert season and a record-breaking show pipeline.

Despite the one-time accrual impacts on operating income, Live Nation anticipates achieving double-digit AOI (Adjusted Operating Income) growth in 2024. Also, it stated optimism for continued momentum into 2025, with a more extensive lineup of stadium, arena and amphitheater shows to meet high fan demand.

LYV’s Q3 Earnings & Revenues

During the third quarter, the company reported adjusted earnings per share (EPS) of $1.66, surpassing the Zacks Consensus Estimate of $1.58 by 5.1%. In the year-ago quarter, the company reported an adjusted EPS of $1.93.

Revenues amounted to $7.7 billion, missing the consensus mark of $7.8 billion. The top line declined 6.2% year over year from $8.2 billion.

Segmental Discussion

Concerts: The segment’s revenues totaled $6.6 billion, down 6% year over year. Our model predicted the metric to fall 0.4% year over year. AOI was $474.1 million, up 39% from the year-ago figure.

Ticketing: Segmental revenues amounted to $693.7 million, down 17% from the prior-year quarter level. Our model estimated the metric to decline 0.9% year over year. AOI was $235.7 million, down 33% year over year.

Sponsorship & Advertising: Revenues from this segment totaled $390.3 million, up 6% from the year-ago quarter’s figure. We estimated the metric to decline 0.4% year over year. AOI was $275.3 million, up 10% year over year.

Other Financial Information

Live Nation's cash and cash equivalents as of Sept. 30, 2024, totaled $5.5 billion, up from $6.23 billion as of Dec. 31, 2023. At the end of the third quarter, goodwill was $2.67 billion compared with $2.69 billion at the end of 2023. Net long-term debt came in at $5.67 billion compared with $5.46 billion as of Dec. 31, 2023.

At the end of the first nine months of 2024, net cash provided by operating activities was $680.1 million compared with $754.6 million reported in the year-ago period.

LYV’s Zacks Rank

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

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