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What's in Store for Live Nation (LYV) this Earnings Season?
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Live Nation Entertainment, Inc. (LYV - Free Report) is set to report its third-quarter 2016 results on Nov 7, after the market closes.
Last quarter, the entertainment company posted an impressive positive earnings surprise of 85.71%. Also, the company beat estimates in three of the four trailing quarters, with an average beat of 11.90%
Let's see how things are shaping up for this announcement.
Factors to Consider
Live Nation operates through four segments – Concerts, Ticketing, Artist Nation, and Sponsorship & Advertising. Over the past few quarters, all the segments – especially Concerts – have been witnessing revenue growth backed by higher tickets sales. We expect the trend to have continued in the to-be-reported quarter as well. Additionally, various digital initiatives undertaken by the company to improve the ticket booking experience should further drive third-quarter revenues.
At its second-quarter conference call, management observed that the company’s pipeline of shows in the second half of the year – particularly stadiums and arenas that are covering all groups including amphitheater, clubs and theaters and festivals – is very strong. It is expecting to increase show counts drastically this year and is reasonably confident of delivering high single digit attendance growth for the full year, with most of the growth happening in the third quarter.
However, unfavorable foreign currency translations, mostly driven by the pound devaluation, and sluggishness in the overall macro environment might dent revenues.
Our proven model does not conclusively show that Live Nation is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks ESP: Live Nation has an Earnings ESP of 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at 48 cents.
Zacks Rank: Live Nation has a Zacks Rank #3. This when combined with a 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the leisure & recreational services sector to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
AMC Entertainment Holdings, Inc. (AMC - Free Report) has an Earnings ESP of +3.57% and a Zacks Rank #3.
Carmike Cinemas, Inc. has an Earnings ESP of +166.67% and a Zacks Rank #3.
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What's in Store for Live Nation (LYV) this Earnings Season?
Live Nation Entertainment, Inc. (LYV - Free Report) is set to report its third-quarter 2016 results on Nov 7, after the market closes.
Last quarter, the entertainment company posted an impressive positive earnings surprise of 85.71%. Also, the company beat estimates in three of the four trailing quarters, with an average beat of 11.90%
Let's see how things are shaping up for this announcement.
Factors to Consider
Live Nation operates through four segments – Concerts, Ticketing, Artist Nation, and Sponsorship & Advertising. Over the past few quarters, all the segments – especially Concerts – have been witnessing revenue growth backed by higher tickets sales. We expect the trend to have continued in the to-be-reported quarter as well. Additionally, various digital initiatives undertaken by the company to improve the ticket booking experience should further drive third-quarter revenues.
At its second-quarter conference call, management observed that the company’s pipeline of shows in the second half of the year – particularly stadiums and arenas that are covering all groups including amphitheater, clubs and theaters and festivals – is very strong. It is expecting to increase show counts drastically this year and is reasonably confident of delivering high single digit attendance growth for the full year, with most of the growth happening in the third quarter.
However, unfavorable foreign currency translations, mostly driven by the pound devaluation, and sluggishness in the overall macro environment might dent revenues.
LIVE NATION ENT Price and EPS Surprise
LIVE NATION ENT Price and EPS Surprise | LIVE NATION ENT Quote
Earnings Whispers
Our proven model does not conclusively show that Live Nation is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks ESP: Live Nation has an Earnings ESP of 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at 48 cents.
Zacks Rank: Live Nation has a Zacks Rank #3. This when combined with a 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the leisure & recreational services sector to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Vail Resorts, Inc. (MTN - Free Report) has an Earnings ESP of +4.46% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMC Entertainment Holdings, Inc. (AMC - Free Report) has an Earnings ESP of +3.57% and a Zacks Rank #3.
Carmike Cinemas, Inc. has an Earnings ESP of +166.67% and a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>