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Factors Setting the Tone for Live Nation's (LYV) Q2 Earnings

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Live Nation Entertainment, Inc. (LYV - Free Report) is scheduled to report second-quarter 2021 results on Aug 3, after market close. In the last-reported quarter, the company delivered a positive earnings surprise of 13.25%.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter bottom line is pegged at a loss of $1.35 per share, compared with a loss of $2.67 in the year-ago quarter. The consensus mark for revenues stands at $469.8 million, indicating a whopping improvement of 534.3% from the prior-year reported figure.

Factors to Note

The company’s performance in the quarter to be reported is likely to have benefited from return of live music events. Previously, the company announced that its U.S. concerts are now fully open. Increased focus on digitalization along with artist-driven initiatives and strong international demand might have aided the company in the to-be-reported quarter.

The coronavirus pandemic has acted as boon for the Ticketmaster. Demand for digital ticketing has increased as venues as well as artists are looking for contactless transactions due to the pandemic.

The Zacks Consensus Estimate for second-quarter concerts revenues stands at $246 million, indicating an improvement of 73.2% from the prior-year quarter. The consensus mark for revenues from Ticketing, and Sponsorship and Advertising are pegged at $130 million and $31.3 million, up from the prior-year quarter figures of ($87) million and $18.4 million, respectively.

Live Nation Entertainment continues to focus on cost saving efforts amid pandemic. The company has been reducing discretionary spending and implementing several cost saving efforts. It has also limited all non-essential capital outlays.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Live Nation Entertainment this time around. Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

Earnings ESP: The company has an Earnings ESP of 0.00%.

Zacks Rank: The company carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some companies in the Zacks Consumer Discretionary sector, which according to our model have the right combination of elements to post an earnings beat.

Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of + 26.32% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hyatt Hotels Corporation (H - Free Report) has an Earnings ESP of +12.24% and a Zacks Rank #3.

Accel Entertainment, Inc. (ACEL - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #3.

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