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Live Nation's (LYV) Q2 Earnings & Revenues Surpass Estimates

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Live Nation Entertainment, Inc. (LYV - Free Report) reported second-quarter 2022 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Moreover, both the metrics improved year over year.

The company has been benefiting from the pent-up demand for live events and robust ticket sales. The company said that the robust performance of Ticketmaster drove the company’s overall profitability.

For concerts, the company said that it has already sold more than 100 million tickets for shows in the second half of 2022 and 2023. During the second quarter, the company promoted more than 12,500 concerts for 33.5 million fans, up more than 20% compared to the second quarter of 2019.

Earnings & Revenues

In second-quarter 2022, the company reported adjusted earnings per share of 66 cents, beating the Zacks Consensus Estimate of 53 cents. In the prior-year quarter, the company had reported an adjusted loss per share of 90 cents.

The company’s revenues amounted to $4,434.2 million, beating the Zacks Consensus Estimate of $3,913 million. In the prior-year quarter, the company had reported revenues of $575.9 million.

Segmental Discussion

Concerts: The segment’s revenues totaled $3,597.8 million, up from the prior-year quarter’s figure of $287 million. Moreover, adjusted operating income came in at $123 million compared to a loss of $74.57 million in the year-ago quarter. Total estimated events increased to 12,488 in the second quarter, up from the prior-year quarter’s 1,722 events.

Ticketing: The segment’s revenues amounted to $575.3 million, up from the prior-year quarter’s figure of $244 million. Adjusted operating income increased to $230.8 million compared with $99.4 million reported in the prior-year quarter. Total estimated tickets sold rose to 138, 866,000.

Sponsorship & Advertising: The segment’s revenues were $379.5 million, up from the prior-year quarter’s $67.2 million. Moreover, adjusted operating income rose to $248 million from $16.5 million reported in the prior-year quarter.

Other Financial Information

Cash and cash equivalents as of Jun 30, 2022, totaled $5,860.4 million compared with $4,884.7 million as of Dec 31, 2021. Goodwill in the second quarter was $2,563.1 million compared with $2,590.9 million at 2021-end. Total long-term debt, net increased to $5,140.2 million compared with $5,145.5 million as of Dec 31, 2021.

Net cash provided by operating activities was $349.1 million compared with $1,095.4 million reported in the prior-year quarter.

Zacks Rank & Key Picks

Live Nation currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the Consumer Discretionary sector are G-III Apparel Group, Ltd. (GIII - Free Report) , Marriott International, Inc. (MAR - Free Report) and Choice Hotels International, Inc. (CHH - Free Report) .

G-III Apparel sports a Zacks Rank #1. GIII has a trailing four-quarter earnings surprise of 97.5%, on average. The stock has declined 26.5% in the past year.

The Zacks Consensus Estimate for GIII’s current financial year sales and EPS indicates growth of 13.8% and 8.2%, respectively, from the year-ago period’s reported levels.

Marriott carries a Zacks Rank #2. MAR has a trailing four-quarter earnings surprise of 1.4%, on average. The stock has increased 36.2% in the past year.

The Zacks Consensus Estimate for MAR’s current financial year sales and EPS indicates growth of 44.6% and 93.7%, respectively, from the year-ago period’s reported levels.

Choice Hotels carries a Zacks Rank #2. CHH has a trailing four-quarter earnings surprise of 20.4%, on average. The stock has increased 4% in the past year.

The Zacks Consensus Estimate for CHH’s current financial year sales and EPS indicates growth of 13.6% and 17.7%, respectively, from the year-ago period’s reported levels.