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Live Nation (LYV) Down 5.2% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Live Nation (LYV - Free Report) . Shares have lost about 5.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Live Nation due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Live Nation Q4 Earnings Miss Estimates, Revenues Beat
Live Nation Entertainment 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -57.29% due to these changes.
VGM Scores
At this time, Live Nation has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Live Nation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Live Nation (LYV) Down 5.2% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Live Nation (LYV - Free Report) . Shares have lost about 5.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Live Nation due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Live Nation Q4 Earnings Miss Estimates, Revenues Beat
Live Nation Entertainment 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -57.29% due to these changes.
VGM Scores
At this time, Live Nation has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Live Nation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.