Factors Setting the Tone for Live Nation's (LYV) Q3 Earnings
Live Nation Entertainment, Inc. LYV is scheduled to report third-quarter 2023 results on Nov 2, 2023, after market close. In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 79% and 16.2%, respectively.
Markedly, its earnings topped the consensus mark in three of the last four quarters, the average being 34.6%
The Trend in Estimate Revision
The Zacks Consensus Estimate for Live Nation's third-quarter earnings per share (EPS) remained unchanged at $1.27 in the past seven days. The estimated figure indicates an 8.6% decline from the year-ago quarter’s figure of $1.39 per share.
Live Nation Entertainment, Inc. Price and EPS Surprise
Live Nation Entertainment, Inc. price-eps-surprise | Live Nation Entertainment, Inc. Quote
For revenues, the consensus mark is pegged at approximately $6,887 million, suggesting an increase of 11.9% from the year-ago quarter’s reported figure.
Let's look at how things have shaped up in the quarter.
Factors at Play
Live Nation Entertainment’s third-quarter top line is expected to have increased year over year on the back of increased demand for live events, robust ticket sales and strong sponsorship growth. A rise in average per-fan spending and an increase in ticket pricing is likely to have aided LYV’s performance in the to-be-reported quarter.
For third-quarter 2023, our model predicts concerts as well as sponsorship and advertising revenues to increase 5.8% and 4.9% year over year to $5,597.8 million and $359.8 million, respectively. Also, we expect ticketing revenues to increase 40.6% year over year to $747.4 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. It has been witnessing a rise in venue costs and service fees. For the quarter to be reported, our model estimates direct operating expenses to rise 5.8% year over year to $4,982.3 million.
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 -2.08%. 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 #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
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 deliver an earnings beat this time around.
MGM Resorts International MGM has an Earnings ESP of +2.61% and a Zacks Rank #2.
Shares of MGM Resorts have declined 3.8% in the past year. MGM’s earnings surpassed the consensus mark in three of the four quarters and missed once, the average surprise being 105.7%.
Marriott International, Inc. MAR has an Earnings ESP of +1.72% and a Zacks Rank #3.
Shares of Marriott have jumped 15.7% in the past year. MAR’s earnings outpaced the consensus mark in each of the trailing four quarters, the average surprise being 5.5%.
DraftKings Inc. DKNG has an Earnings ESP of +17.52% and a Zacks Rank #3.
Shares of DraftKings have climbed 68.7% in the past year. DKNG’s earnings outshined the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 12%.
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Marriott International, Inc. (MAR) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
DraftKings Inc. (DKNG) : Free Stock Analysis Report
