We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Investors Should Retain Live Nation (LYV) Stock
Read MoreHide Full Article
Live Nation Entertainment, Inc. (LYV - Free Report) is likely to benefit from pent-up demand for live events, Venue Nation portfolio and the sponsorship and advertising business. Also, focus on new client additions bode well. However, rise in operating expenses are a concern.
Let us discuss the factors that highlight why investors should retain the stock for the time being.
Growth Catalysts
Shares of Live Nation have gained 28.6% in the past three months compared with the industry’s 13% growth. The company is benefiting from pent-up demand for live events and robust ticket sales. During the first quarter of 2023, the company sold $72.6 million in fee-bearing tickets, up 41% year over year. the upside was primarily backed by solid North America concert ticket sales growth (35%) and international concert ticket sales growth (65%). Also, it recorded benefits from new client additions. Backed by solid consumer demand and increased ticket volume, gross transaction value (GTV) during the quarter came in at $7.7 billion, up 60% year over year. Going forward, the company anticipates increased Live Nation concert ticket sales and additional sales from ancillary revenue streams, including insurance, upgrades and other upsells.
Image Source: Zacks Investment Research
Increased focus on Venue Nation portfolio bodes well. In 2023, the company emphasized on hosting nearly 3 million fans at 1,000 shows. It is optimistic in this regard and anticipates the initiative to drive long-term growth and profitability across its businesses.
The company is affirmative about its growth prospects in 2023. Robust fan engagement will likely continue into 2023, as arenas, amphitheaters and stadiums are expected to witness growth in their show count and ticket sales relative to 2022 levels. For concerts, the company stated that it has already sold more than 90 million tickets (as of May 2023), up 20% year over year. In terms of tickets, the company is likely to benefit from the market pricing trend.
The company emphasizes sponsorship and advertising businesses to drive growth. In first-quarter 2023, total revenues from Sponsorship & Advertising business came in at $170.1 million, up 47% from $115.7 million reported in the previous year. The upside was primarily driven by the reopening of international markets, the increase in high-profile artists (that attract premium marketing partners) and the expansion of our venue network. Also, it stated benefit from new partnerships, including Google Pixel, PayPal and Levi's. Given the strength in consumer demand (for the upcoming shows) and confirmed sponsorship activity (of more than 80%), the momentum will likely persist in the upcoming periods.
Concerns
The company has been bearing the brunt of increased expenses for some time. The downside is compounded by noticeably high costs (caused by expanded operations) and higher selling, general and administrative expenditures (due to compensation costs brought on by increasing staff year over year). In first-quarter 2023, total direct operating expenses were $2,115.6 million compared with $1,071 million reported in the prior-year quarter. Selling, general and administrative expenses in the same quarter were $690.3 million compared with $570.2 million reported in the prior-year period. The company is cautious of cost overruns related to the development and expansion of live music venues.
Zacks Rank & Key Picks
Live Nation currently carries a Zacks Rank #3 (Hold).
Royal Caribbean Cruises Ltd. (RCL - Free Report) sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 26.4%, on average. Shares of RCL have surged 142.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Royal Caribbean Cruises’ 2023 sales and EPS indicates a rise of 48.5% and 162.9%, respectively, from the year-ago period’s levels.
Trip.com Group Limited (TCOM - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 147.9%, on average. Shares of TCOM have increased 24.9% in the past year.
The Zacks Consensus Estimate for Trip.com Group’s 2023 sales and EPS implies an increase of 102.2% and 334.5%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) currently carries a Zacks Rank #2 (Buy). OSW has a trailing four-quarter earnings surprise of 65.8%, on average. Shares of OSW have increased 49% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 33.9% and 89.3%, respectively, from the year-ago period’s levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why Investors Should Retain Live Nation (LYV) Stock
Live Nation Entertainment, Inc. (LYV - Free Report) is likely to benefit from pent-up demand for live events, Venue Nation portfolio and the sponsorship and advertising business. Also, focus on new client additions bode well. However, rise in operating expenses are a concern.
Let us discuss the factors that highlight why investors should retain the stock for the time being.
Growth Catalysts
Shares of Live Nation have gained 28.6% in the past three months compared with the industry’s 13% growth. The company is benefiting from pent-up demand for live events and robust ticket sales. During the first quarter of 2023, the company sold $72.6 million in fee-bearing tickets, up 41% year over year. the upside was primarily backed by solid North America concert ticket sales growth (35%) and international concert ticket sales growth (65%). Also, it recorded benefits from new client additions. Backed by solid consumer demand and increased ticket volume, gross transaction value (GTV) during the quarter came in at $7.7 billion, up 60% year over year. Going forward, the company anticipates increased Live Nation concert ticket sales and additional sales from ancillary revenue streams, including insurance, upgrades and other upsells.
Image Source: Zacks Investment Research
Increased focus on Venue Nation portfolio bodes well. In 2023, the company emphasized on hosting nearly 3 million fans at 1,000 shows. It is optimistic in this regard and anticipates the initiative to drive long-term growth and profitability across its businesses.
The company is affirmative about its growth prospects in 2023. Robust fan engagement will likely continue into 2023, as arenas, amphitheaters and stadiums are expected to witness growth in their show count and ticket sales relative to 2022 levels. For concerts, the company stated that it has already sold more than 90 million tickets (as of May 2023), up 20% year over year. In terms of tickets, the company is likely to benefit from the market pricing trend.
The company emphasizes sponsorship and advertising businesses to drive growth. In first-quarter 2023, total revenues from Sponsorship & Advertising business came in at $170.1 million, up 47% from $115.7 million reported in the previous year. The upside was primarily driven by the reopening of international markets, the increase in high-profile artists (that attract premium marketing partners) and the expansion of our venue network. Also, it stated benefit from new partnerships, including Google Pixel, PayPal and Levi's. Given the strength in consumer demand (for the upcoming shows) and confirmed sponsorship activity (of more than 80%), the momentum will likely persist in the upcoming periods.
Concerns
The company has been bearing the brunt of increased expenses for some time. The downside is compounded by noticeably high costs (caused by expanded operations) and higher selling, general and administrative expenditures (due to compensation costs brought on by increasing staff year over year). In first-quarter 2023, total direct operating expenses were $2,115.6 million compared with $1,071 million reported in the prior-year quarter. Selling, general and administrative expenses in the same quarter were $690.3 million compared with $570.2 million reported in the prior-year period. The company is cautious of cost overruns related to the development and expansion of live music venues.
Zacks Rank & Key Picks
Live Nation currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
Royal Caribbean Cruises Ltd. (RCL - Free Report) sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 26.4%, on average. Shares of RCL have surged 142.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Royal Caribbean Cruises’ 2023 sales and EPS indicates a rise of 48.5% and 162.9%, respectively, from the year-ago period’s levels.
Trip.com Group Limited (TCOM - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 147.9%, on average. Shares of TCOM have increased 24.9% in the past year.
The Zacks Consensus Estimate for Trip.com Group’s 2023 sales and EPS implies an increase of 102.2% and 334.5%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) currently carries a Zacks Rank #2 (Buy). OSW has a trailing four-quarter earnings surprise of 65.8%, on average. Shares of OSW have increased 49% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 33.9% and 89.3%, respectively, from the year-ago period’s levels.