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Is a Beat in Store for Live Nation (LYV) in Q1 Earnings?
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Live Nation Entertainment, Inc. (LYV - Free Report) is scheduled to report first-quarter 2017 results on May 4, after the market closes. We expect the company to surpass expectations.
Last quarter, Live Nation’s loss was in line with the Zacks Consensus Estimate. Prior to that, the company posted positive earnings surprise in each of the three trailing quarters, bringing the average surprise in the last four quarters to a positive 23.56%.
Live Nation Entertainment, Inc. Price and EPS Surprise
Our proven model shows that Live Nation is likely to beat on earnings because it has the perfect combination of the two key ingredients.
Zacks ESP: Live Nation has an Earnings ESP of +6.06% because the Most Accurate estimate is at a loss of 31 cents, while the Zacks Consensus Estimate is pegged at a loss of 33 cents. This is a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Live Nation currently carries a Zacks Rank #3 (Hold). According to our proven model, the stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. In this context, Live Nation’s combination of a favorable Zacks Rank and positive Earnings ESP makes us reasonably confident of an earnings beat.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
What is Driving the Better-than-Expected Earnings?
Live Nation has historically operated through four segments – Concerts, Ticketing, Artist Nation, and Sponsorship & Advertising. But from 2017, the company is expected to report only under three business segments, by combining its Concerts and Artist Nation segments into one.
Over the past few quarters, all these segments, especially the Concerts segment, have been witnessing revenue growth backed by higher tickets sales. We expect this trend to have continued in the to-be-reported quarter as well. Additionally, various digital initiatives undertaken by the company are likely to improve the ticket booking experience and further drive first-quarter revenues.
Furthermore, Live Nation's ticketing business operates under the well-known brand, Ticketmaster, which has been posting solid revenues over the past few quarters. The company also boasts a significant presence in this high-margin agency business where it charges a fee for selling tickets on behalf of its clients. Thus, we expect the momentum of revenue growth to continue in the Ticketing segment.
In the fourth quarter conference call, management noted that ticket sales were up double-digit year over year through Feb 2017, driven by higher demand for arena and stadium shows.
However, unfavorable foreign currency translations and sluggishness in the overall macro environment might dent revenues.
Key Picks
Live Nation is not the only company looking up this earnings season. Here are some other companies in the same space to consider as our model shows they also have the right combination of elements to post an earnings beat this quarter:
Camping World Holdings, Inc. (CWH - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3.
Norwegian Cruise Line Holdings, Inc. (NCLH - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Is a Beat in Store for Live Nation (LYV) in Q1 Earnings?
Live Nation Entertainment, Inc. (LYV - Free Report) is scheduled to report first-quarter 2017 results on May 4, after the market closes. We expect the company to surpass expectations.
Last quarter, Live Nation’s loss was in line with the Zacks Consensus Estimate. Prior to that, the company posted positive earnings surprise in each of the three trailing quarters, bringing the average surprise in the last four quarters to a positive 23.56%.
Live Nation Entertainment, Inc. Price and EPS Surprise
Live Nation Entertainment, Inc. Price and EPS Surprise | Live Nation Entertainment, Inc. Quote
Why a Likely Positive Surprise?
Our proven model shows that Live Nation is likely to beat on earnings because it has the perfect combination of the two key ingredients.
Zacks ESP: Live Nation has an Earnings ESP of +6.06% because the Most Accurate estimate is at a loss of 31 cents, while the Zacks Consensus Estimate is pegged at a loss of 33 cents. This is a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Live Nation currently carries a Zacks Rank #3 (Hold). According to our proven model, the stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. In this context, Live Nation’s combination of a favorable Zacks Rank and positive Earnings ESP makes us reasonably confident of an earnings beat.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
What is Driving the Better-than-Expected Earnings?
Live Nation has historically operated through four segments – Concerts, Ticketing, Artist Nation, and Sponsorship & Advertising. But from 2017, the company is expected to report only under three business segments, by combining its Concerts and Artist Nation segments into one.
Over the past few quarters, all these segments, especially the Concerts segment, have been witnessing revenue growth backed by higher tickets sales. We expect this trend to have continued in the to-be-reported quarter as well. Additionally, various digital initiatives undertaken by the company are likely to improve the ticket booking experience and further drive first-quarter revenues.
Furthermore, Live Nation's ticketing business operates under the well-known brand, Ticketmaster, which has been posting solid revenues over the past few quarters. The company also boasts a significant presence in this high-margin agency business where it charges a fee for selling tickets on behalf of its clients. Thus, we expect the momentum of revenue growth to continue in the Ticketing segment.
In the fourth quarter conference call, management noted that ticket sales were up double-digit year over year through Feb 2017, driven by higher demand for arena and stadium shows.
However, unfavorable foreign currency translations and sluggishness in the overall macro environment might dent revenues.
Key Picks
Live Nation is not the only company looking up this earnings season. Here are some other companies in the same space to consider as our model shows they also have the right combination of elements to post an earnings beat this quarter:
The Madison Square Garden Company has an Earnings ESP of +36.36% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Camping World Holdings, Inc. (CWH - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3.
Norwegian Cruise Line Holdings, Inc. (NCLH - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>