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Live Nation (LYV) Declines 20% in a Year: Is the Worst Over?
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Live Nation Entertainment, Inc. (LYV - Free Report) has declined 19.9% in the past year compared with the industry’s decrease of 48.3%.
Although the company’s shares have declined in the year, the stock is likely to take a U-turn due to pent-up demand, Ticketmaster growth and strong sponsorship. This Zacks Rank #1 (Strong Buy) company’s earnings in 2022 and 2023 are estimated to witness growth of 117.2% and 164%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth Drivers
The company continues to benefit from robust demand. 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. For the remainder of 2022, confirmed show bookings are up more than 30%, owing to double-digit increases in every market and across all venue types.
In the third quarter of 2022, the company is likely to benefit from robust attendance. Live Nation Entertainment believes that 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 drive the company’s performance.
The coronavirus pandemic has acted as a boon for Ticketmaster. Demand for digital ticketing has increased as venues as well as artists are seeking contactless transactions due to the pandemic. Ticketmaster is likely to benefit in 2022 from increased Live Nation concert ticket sales and additional sales from new clients.
During third-quarter 2021, Ticketmaster witnessed its fourth highest fee-bearing GTV quarter, excluding refunds, driven by sports legs resuming and concert on-sales for 2022 ramping up. The company is benefiting from technology investments.
Image Source: Zacks Investment Research
The company’s sponsorships also witnessed the best quarter. During second-quarter 2022, sponsorship revenues were $379.5 million, up from the prior-year quarter’s $67.2 million. During the second quarter of 2022, the company gained from high growth in both on-site and online sponsorship as the United States, the United Kingdom and Mainland Europe are all fully open.
The company is likely to benefit from the OCESA buyout. It has a strong business portfolio in ticketing, sponsorship, food & beverage, merchandise, and venue operation. The company has 13 premier venues across Mexico. During its first-quarter 2022 conference call, the company announced that it anticipates OCESA to report full-year results in line with 2019 as Mexico is fully active.
Marriott Vacations currently sports a Zacks Rank #1. VAC has a trailing four-quarter earnings surprise of 13.9%, on average. The stock has declined 18% in the past year.
The Zacks Consensus Estimate for VAC’s current financial year sales and earnings per share (EPS) indicates an increase of 19.7% and 131.4%, respectively, from the year-ago period’s reported levels.
Hyatt carries a Zacks Rank #2 (Buy). H has a trailing four-quarter earnings surprise of 798.9%, on average. The stock has declined 2% in the past year.
The Zacks Consensus Estimate for H’s current financial year EPS indicates growth of 113% from the year-ago period’s reported levels.
InterContinental Hotels carries a Zacks Rank #1. IHG has a long-term earnings growth of 32.7%. The stock has declined 26.6% in the past year.
The Zacks Consensus Estimate for IHG’s current financial year sales and EPS indicates growth of 21.7% and 88.4%, respectively, from the year-ago period’s reported levels.
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Live Nation (LYV) Declines 20% in a Year: Is the Worst Over?
Live Nation Entertainment, Inc. (LYV - Free Report) has declined 19.9% in the past year compared with the industry’s decrease of 48.3%.
Although the company’s shares have declined in the year, the stock is likely to take a U-turn due to pent-up demand, Ticketmaster growth and strong sponsorship. This Zacks Rank #1 (Strong Buy) company’s earnings in 2022 and 2023 are estimated to witness growth of 117.2% and 164%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth Drivers
The company continues to benefit from robust demand. 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. For the remainder of 2022, confirmed show bookings are up more than 30%, owing to double-digit increases in every market and across all venue types.
In the third quarter of 2022, the company is likely to benefit from robust attendance. Live Nation Entertainment believes that 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 drive the company’s performance.
The coronavirus pandemic has acted as a boon for Ticketmaster. Demand for digital ticketing has increased as venues as well as artists are seeking contactless transactions due to the pandemic. Ticketmaster is likely to benefit in 2022 from increased Live Nation concert ticket sales and additional sales from new clients.
During third-quarter 2021, Ticketmaster witnessed its fourth highest fee-bearing GTV quarter, excluding refunds, driven by sports legs resuming and concert on-sales for 2022 ramping up. The company is benefiting from technology investments.
Image Source: Zacks Investment Research
The company’s sponsorships also witnessed the best quarter. During second-quarter 2022, sponsorship revenues were $379.5 million, up from the prior-year quarter’s $67.2 million. During the second quarter of 2022, the company gained from high growth in both on-site and online sponsorship as the United States, the United Kingdom and Mainland Europe are all fully open.
The company is likely to benefit from the OCESA buyout. It has a strong business portfolio in ticketing, sponsorship, food & beverage, merchandise, and venue operation. The company has 13 premier venues across Mexico. During its first-quarter 2022 conference call, the company announced that it anticipates OCESA to report full-year results in line with 2019 as Mexico is fully active.
Other Key Picks
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are Marriott Vacations Worldwide Corporation (VAC - Free Report) , Hyatt Hotels Corporation (H - Free Report) and InterContinental Hotels Group PLC (IHG - Free Report) .
Marriott Vacations currently sports a Zacks Rank #1. VAC has a trailing four-quarter earnings surprise of 13.9%, on average. The stock has declined 18% in the past year.
The Zacks Consensus Estimate for VAC’s current financial year sales and earnings per share (EPS) indicates an increase of 19.7% and 131.4%, respectively, from the year-ago period’s reported levels.
Hyatt carries a Zacks Rank #2 (Buy). H has a trailing four-quarter earnings surprise of 798.9%, on average. The stock has declined 2% in the past year.
The Zacks Consensus Estimate for H’s current financial year EPS indicates growth of 113% from the year-ago period’s reported levels.
InterContinental Hotels carries a Zacks Rank #1. IHG has a long-term earnings growth of 32.7%. The stock has declined 26.6% in the past year.
The Zacks Consensus Estimate for IHG’s current financial year sales and EPS indicates growth of 21.7% and 88.4%, respectively, from the year-ago period’s reported levels.