Here's What to Expect From Live Nation Entertainment's…

Here's What to Expect From Live Nation Entertainment's Next Earnings Report

With a market cap of $26.4 billion, Beverly Hills, California-based Live Nation Entertainment, Inc. (LYV) is a leader in the live entertainment industry. Operating globally through Concerts, Ticketing, and Sponsorship & Advertising segments, it manages venues, promotes events, and offers comprehensive ticketing services. The company is expected to release its fiscal Q3 earnings results on Thursday, Nov. 7.

Ahead of this event, analysts project the Ticketmaster-parent to report a profit of $1.60 per share, reflecting a decrease of 10.1% from $1.78 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions. LYV reported EPS of $1.03 in Q2, exceeding the consensus estimate by 5.1%.

For fiscal 2024, analysts forecast LYV to report EPS of $1.18, a 13.9% decrease from $1.37 recorded in fiscal 2023. However, EPS is anticipated to rebound strongly in fiscal 2025, with an expected 78.8% year-over-year growth, reaching $2.11.

Over the past 52 weeks, Live Nation Entertainment surged 48.2%, outperforming the broader S&P 500 Index's ($SPX) 36.8% gain and the Communication Services Select Sector SPDR ETF Fund's (XLC) 33.9% return over the same time frame.

Despite weaker-than-expected Q2 revenue of $6 billion on Jul. 30, LYV shares rose 1.7% the following day primarily due to a 21% increase in adjusted operating income and a record Q2 margin of 5.4%. Management’s positive outlook for double-digit AOI growth, fueled by strong demand for live events, high fan spending, and lower cancellation rates, boosted investor confidence. Additionally, the company’s plans to open 14 new venues globally and expand major sponsorships reassured investors of sustained growth through 2024 and into 2025.

Analysts' consensus view on Live Nation Entertainment stock is bullish, with a "Strong Buy" rating overall. Among 19 analysts covering the stock, 17 suggest a "Strong Buy," one gives a "Moderate Buy," and one recommends a "Hold." This configuration is slightly more bullish than three months ago, with 16 analysts suggesting a "Strong Buy."

The average analyst price target for LYV is $124.22, suggesting a potential upside of only 6.7% from current levels.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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