Live Nation (LYV) Q4 Earnings Miss Estimates, Revenues Beat
Live Nation Entertainment, Inc. LYV reported mixed fourth-quarter 2021 results, with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. However, the metrics increased year over year.
The company has been benefiting from pent-up demand for live events and robust ticket sales for major festivals. Despite reporting mixed results, the company stated that robust ticket sales will drive the company’s performance in 2022.
For concert sales, the company sold 45 million tickets for shows this year through mid-February, up 45% from the same period’s levels in 2019. The company has eight artists who have sold more than 500 thousand tickets for their tours this year, including Bad Bunny, Dua Lipa and Billie Eilish.
The company, which restarted its concert business in the second half of 2021, organized 17,000 concerts for 35 million fans in 2021, primarily in the United States and the U.K. markets. In the last five months of 2021, in the United States and the U.K., more than 15 million fans attended its outdoor events.
Earnings & Revenues
In fourth-quarter 2021, the company reported an adjusted loss per share of 96 cents, wider than the Zacks Consensus Estimate of a loss of 55 cents. In the prior-year quarter, the company had reported an adjusted loss per share of $2.04.
The company’s revenues amounted to $2,703.2 million, beating the Zacks Consensus Estimate of $1,931 million. In the prior-year quarter, the company had reported revenues of $237 million.
Live Nation Entertainment, Inc. Price, Consensus and EPS Surprise
Live Nation Entertainment, Inc. price-consensus-eps-surprise-chart | Live Nation Entertainment, Inc. Quote
Segmental Discussion
Concerts: The segment’s revenues totaled $2,044.2 million, up from the prior-year quarter’s figure of $178.4 million. Adjusted operating loss came in at $122.3 million, narrower than a loss of $166.7 million in the year-ago quarter. Total estimated events increased to 17,234 in 2021, up from 8,117 events in the prior year.
Ticketing: The segment’s revenues amounted to $487.7 million, up from the prior-year quarter’s figure of $10.9 million. Adjusted operating income increased to $212.1 million against a loss of ($73.7) million reported in the prior-year quarter. The total estimated tickets sold rose to 282,335,000.
Sponsorship & Advertising: The segment’s revenues were $411.9 million, up from the prior-year quarter’s $203.7 million. Moreover, adjusted operating income rose to $242.2 million from $81.9 million reported in the prior-year quarter.
Other Financial Information
Cash and cash equivalents as of Dec 31, 2021, totaled $4,884.7 million compared with $2,537.8 million as of Dec 31, 2020. Goodwill in the fourth quarter was $2,590.9 million compared with $2,129.2 million at 2020-end. Total long-term debt net increased to $5,145.5 million compared with $4,855.1 million as of Dec 31, 2020.
Net cash provided by operating activities was $755.9 million against ($126.5) million reported in the prior-year quarter.
Zacks Rank & Key Picks
Live Nation currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Crocs, Inc. CROX, Cedar Fair, L.P. FUN and Ralph Lauren Corporation RL.
Crocs flaunts a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 36%, on average. Shares of Crocs have increased by 2.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 48.6% and 22.1%, respectively, from the year-ago period’s levels.
Cedar Fair sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 16.3%, on average. Shares of Cedar Fair have gained 15.4% in the past year.
The Zacks Consensus Estimate for FUN’s 2022 sales and EPS suggests growth of 32.6% and 612.7%, respectively, from the year-ago period’s levels.
Ralph Lauren flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 94.1%, on average. Shares of Ralph Lauren have increased 9.7% in the past year.
The Zacks Consensus Estimate for RL’s 2022 sales and EPS suggests growth of 40% and 381.2%, respectively, from the year-ago period’s levels.
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