Live Nation's (LYV) Q4 Earnings Lag, Revenues Surpass Estimates
Live Nation Entertainment, Inc. LYV reported fourth-quarter 2022 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. Following the results, the company’s shares increased 1.8% in the after-hour trading session on Feb 23.
The company has been benefiting from the pent-up demand for live events and robust ticket sales. It continues to benefit from the robust performance of Ticketmaster and the increase in fan spending. In 2022, 121 million fans attended its shows across 45 countries.
For shows in 2023, the company is witnessing even stronger ticket sales. In 2023, the company expects to add more venues to its operated portfolio. In terms of tickets, the company is likely to benefit from the market pricing trend.
Earnings & Revenues
In the fourth quarter of 2022, the company reported an adjusted loss per share of $1.09, wider than the Zacks Consensus Estimate of a loss of 96 cents. In the prior-year quarter, the company had reported an adjusted loss per share of 96 cents.
The company’s revenues amounted to $4,290.6 million, beating the Zacks Consensus Estimate of $3,459 million. The company’s revenues also increased 59% year over year.
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 $3,395.9 million, up 66% year over year. Moreover, the adjusted operating loss came in at $184.8 million compared with a loss of $122.3 million in the year-ago quarter. Total estimated events increased to 43,644 in 2022, up from the prior-year 17,412 events.
Ticketing: The segment’s revenues amounted to $651.3 million, up 34% from the prior-year quarter. Adjusted operating income increased to $227.7 million from $212.1 million reported in the prior-year quarter. In 2022, total estimated tickets sold rose to 550,675,000.
Sponsorship & Advertising: The segment’s revenues were $245.6 million, up 44% from the prior-year quarter. Moreover, adjusted operating income rose to $117.7 million from $114.5 million reported in the prior-year quarter.
Other Financial Information
Cash and cash equivalents as of Dec 31, 2022, totaled $5,606.5 million compared with $4,884.7 million as of Dec 31, 2021. Goodwill in the fourth quarter was $2,529.4 million compared with $2,590.9 million at 2021-end. Total long-term debt, net increased to $5,283.5 million compared with $5,145.5 million as of Dec 31, 2021.
In 2022, net cash provided by operating activities was $1,832.1 million compared with $1,780.6 million reported in the prior-year quarter.
Zacks Rank & Key Picks
Live Nation currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are OneSpaWorld Holdings Limited. OSW, Las Vegas Sands Corp. LVS and Playa Hotels & Resorts N.V. PLYA.
OneSpaWorld currently sports a Zacks Rank #1 (Strong Buy). OSW has a trailing four-quarter earnings surprise of 84.2%, on average. Shares of the company have increased 10.5% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSW’s 2023 sales and earnings per share (EPS) indicates a rise of 24.5% and 87.5%, respectively, from the year-ago period’s levels.
Las Vegas Sands sports a Zacks Rank #1. LVS has a long-term earnings growth rate of 4.9%. The stock has increased 24.1% in the past year.
The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 100.8% and 217.5%, respectively, from the year-ago period’s estimated levels.
Playa Hotels sports a Zacks Rank #1. PLYA has a trailing four-quarter earnings surprise of 19.4%, on average. Shares of the company have declined 8.1% in the past year.
The Zacks Consensus Estimate for PLYA’s 2023 sales and EPS indicates a rise of 7.9% and 34.7%, respectively, from the year-ago levels.
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