What's in the Cards for Live Nation's (LYV) Q1 Earnings?
Live Nation Entertainment, Inc. LYV is scheduled to report first-quarter 2020 results on May 7, after market close. In the last-reported quarter, the company delivered a negative earnings surprise of 25.7%.
How Are Estimates Placed?
The Zacks Consensus Estimate for first-quarter bottom line is pegged at a loss of 58 cents per share, compared with a loss of 31 cents recorded in the year-ago quarter. For revenues, the consensus mark is pegged at $1,456 million, indicating a decline of 15.7% from the year-ago figure.
Let's take a look at how things have shaped up in the quarter.
Live Nation Entertainment, Inc. Price and EPS Surprise
Live Nation Entertainment, Inc. price-eps-surprise | Live Nation Entertainment, Inc. Quote
Factors at Play
The coronavirus pandemic is expected to have materially affected Live Nation’s performance in the first quarter.
Due to the pandemic, shutdown of live events in the month of March is likely to get reflected on the top-line results. With majority of the shows rescheduled, the company expects refund rates to rise more than 20% for the first quarter.
Resultantly, the Zacks Consensus Estimate for first-quarter concerts revenues is estimated at $1,199 million, indicating a decline of 9% from the prior-year quarter. Also, revenues from Ticketing as well as from Sponsorship and Advertising are likely to decline from the year-ago quarter. However, revenues from Other and Eliminations are expected to be on par with the prior-year quarter levels.
Meanwhile, increased focus on digitalization along with artist-driven initiatives and international expansion are likely to have aided the company in the to-be-reported quarter.
What Our Model Says
Our proven model does not predict an earnings beat for 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 estimates. But that's not the case here.
Earnings ESP: Live Nation has an Earnings ESP of -15.92%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Live Nation, which shares space with Carnival Corporation CCL, Cinemark Holdings Inc CNK and Drive Shack Inc. DS in the Leisure and Recreation Services industry, currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
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