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Live Nation (LYV) Q1 Earnings Beat Estimates, Revenues Lag

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Live Nation Entertainment, Inc. (LYV - Free Report) reported mixed first-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same. However, both the top and bottom lines improved year over year. Following the results, the company’s shares increased 2% in the after-hours trading session on May 5.

The company has been benefiting from pent-up demand for live events and robust ticket sales. Live Nation noted that the robust performance of Ticketmaster drove its overall profitability.

For concerts, the company announced that it has already sold more than 70 million tickets for shows in 2022, up 36% from the comparable period in 2019. Concert bookings are up 44% through late April (vs. 2019).

Earnings & Revenues

In first-quarter 2022, the company reported adjusted loss per share of 39 cents, narrower than the Zacks Consensus Estimate of a loss of 98 cents. In the prior-year quarter, the company had reported adjusted loss per share of $1.44.

The company’s revenues amounted to $1,802.8 million, missing the Zacks Consensus Estimate of $1,918 million. In the prior-year quarter, the company had reported revenues of $290.6 million.

Segmental Discussion

Concerts: The segment’s revenues totaled $1,207.8 million, up from the prior-year quarter figure of $239.4 million. Adjusted operating loss was $49.2 million compared with a loss of $74.57 million in the year-ago quarter. Total estimated events increased to 6,607 in first-quarter, up from the prior year of 668 events.

Ticketing: The segment’s revenues amounted to $480.4 million, up from the prior-year quarter figure of $28.3 million. Adjusted operating income increased to $206.2 million against a loss of $62.8 million reported in the prior-year quarter. Total estimated tickets sold rose to 111,292,000.

Sponsorship & Advertising: The segment’s revenues were $115.7 million, up from the prior-year quarter’s $22.6 million. Adjusted operating income rose to $69.7 million from $3.5 million reported in the prior-year quarter.

Other Financial Information

Cash and cash equivalents as of Mar 31, 2022, totaled $5,871.9 million compared with $4,884.7 million as of Dec 31, 2021. Goodwill in the first quarter was $2,604.8 million compared with $2,590.9 million at the 2021-end. Total long-term debt increased to $5,146.7 million, compared with $5,145.5 million as of Dec 31, 2021.

Net cash provided by operating activities was $1,198.3 million, compared with $74.6 million reported in the prior-year quarter.

Zacks Rank & Key Picks

Live Nation currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Consumer Discretionary sector are Clarus Corporation (CLAR - Free Report) , Bluegreen Vacations Holding Corporation (BVH - Free Report) and Funko, Inc. (FNKO - Free Report) .

Clarus sports a Zacks Rank #1 (Strong Buy) at present. The company has a trailing four-quarter earnings surprise of 12.3%, on average. Shares of the company have increased 21.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CLAR’s 2022 sales and earnings per share (EPS) suggests growth of 25.3% and 22.5%, respectively, from the year-ago period’s levels.

Bluegreen Vacations flaunts a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 425.1%, on average. The stock has surged 44.1% in the past year.

The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 8.3% and 20.8%, respectively, from the year-ago period’s reported levels.

Funko sports a Zacks Rank #1. FNKO has a trailing four-quarter earnings surprise of 96.2%, on average. Shares of the company have declined 16.9% in the past year.

The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 22.6% and 26.8%, respectively, from the year-ago period’s reported levels.