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

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Live Nation Entertainment, Inc. (LYV - Free Report) is scheduled to report second-quarter 2023 results on Jul 27, after market close. In the last reported quarter, the company delivered an earnings surprise of 44.4%.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter earnings is pegged at 63 cents per share, down 4.6% year over year. The consensus mark for revenues is pegged at $4.82 billion, up 8.8% year over year.

Factors to Note

Live Nation Entertainment’s top line is likely to have benefited from pent-up demand for live events, robust ticket sales, and sponsorship and advertising business. The company continues to gain from a rise in average per-fan spending and an increase in ticket pricing.

In second-quarter 2023, our model predicts concerts as well as sponsorship and advertising revenues to increase 3.9% and 20.3% year over year to $3,737.7 million and $317.3 million, respectively. Also, we expect ticketing revenues to improve 4.8% year over year to $603.1 million.

However, higher expenses due to increased labor-hiring costs, artist activation costs and other operational expenses are likely to have hurt LYV’s bottom line in the quarter to be reported. Also, it has been witnessing a rise in venue costs and service fees. Management is cautious of cost overruns related to the development and expansion of live music venues.

For second-quarter, our model estimates direct operating expenses to rise 4.2% year over year. We project adjusted operating margin of 10.5% compared with 10.8% reported in the prior-year quarter.

What the Zacks Model Unveils

Our proven model predicts 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: LYV has an Earnings ESP of +35.05%.

Zacks Rank: LYV sports a Zacks Rank #1.

Other Stocks Poised to Beat Earnings

Here are some other 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 this season.

Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) has an Earnings ESP of +10.43% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Norwegian Cruise have surged 86.1% in the past year. NCLH’s earnings beat estimates in two of the trailing four quarters and missed twice, the average negative surprise being 4%.

MGM Resorts International (MGM - Free Report) has an Earnings ESP of +19.43% and a Zacks Rank #2.

Shares of MGM Resorts have increased 63.7% in the past year. MGM’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 81%.

Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +2.54% and a Zacks Rank #2.

Shares of Electronic Arts have gained 5.4% in the past three months. EA’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 7.3%.

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

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