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Live Nation (LYV) to Report Q2 Earnings: What's in Store?

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Live Nation Entertainment, Inc. (LYV - Free Report) is scheduled to report second-quarter 2022 results on Aug 4, after market close. In the last reported quarter, the company delivered a positive earnings surprise of 60.2%.

Q2 Estimates

The Zacks Consensus Estimate for the second-quarter bottom line is pegged at a loss of 53 cents per share compared with a loss of 90 cents reported in the year-ago quarter. The consensus mark for revenues stands at $3.92 billion compared with $576 million reported in the prior-year quarter.

Factors to Note

Live Nation Entertainment’s top line in the quarter is likely to have benefited from pent-up demand for live events, robust ticket sales, a rise in average per fan spending and increases in ticket pricing. On the other hand, Ticketmaster is benefiting from increased Live Nation concert ticket sales and additional sales from new clients.

During the first-quarter 2022 conference call, the company said that for concerts, it has already sold more than 70 million tickets in 2022, up 36% from the comparable period in 2019. Live Nation Entertainment believes several of its artists like Dave Matthews, Luke Bryan, Maroon 5, Travis Scott, and Garth Brooks, among others, will have multi-year tours across the United States and Europe. This, in turn, will continue to drive the company’s performance.

The Zacks Consensus Estimate for second-quarter concert revenues stands at $3,292 million compared with $287 million reported in the prior-year quarter. The consensus mark for revenues from Ticketing, Sponsorship and Advertising are pegged at $447 million and $168 million, up from the prior-year quarter’s figures of $244 million and $44.6 million, respectively.

However, high costs are likely to have negatively impacted the company’s bottom line. The company has been witnessing cost increases due to a rise in labor costs, supply chain challenges and inflation. It anticipates variable costs per fan, excluding talent, to increase 7% in 2022.

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 Posed to Beat Earnings

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:

Callaway Golf Company has an Earnings ESP of +2.69% and a Zacks Rank of 2.

Shares of Callaway Golf have declined 32.8% in the past year. ELY’s earnings surpassed the consensus mark in all the trailing four quarters, the average being 955.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Under Armour, Inc. (UAA - Free Report) has an Earnings ESP of +1.05% and a Zacks Rank of 3.

Shares of Under Armour have declined 56.1% in the past year. UAA’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 103.8%.

Dolby Laboratories, Inc. (DLB - Free Report) has an Earnings ESP of +5.00% and a Zacks Rank #3.

Shares of Dolby Laboratories have declined 22.5% in the past year. DLB’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 14.7%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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