Quarterly Review: What to Expect
The entertainment giant Live Nation Entertainment, Inc. (LYV) is all set to unveil its anticipated fourth-quarter 2023 results on February 22, once the markets have wrapped up for the day. In the last quarter, the company left investors cheering with a remarkable earnings surprise of 40.2%.
Estimates for Q4
Breaking down the figures, the Zacks Consensus Estimate anticipates a fourth-quarter loss of $1.08 per share. Compared to the prior-year period’s reported loss of $1.09 per share, this estimate could indicate a step in the right direction for Live Nation. Moreover, market observers expect a 10% year-over-year surge, with revenue projected to reach $4.72 billion.
Factors at Play
Live Nation seems poised to see a surge in fourth-quarter revenues, fueled by heightened interest in live events, robust ticket sales, and impressive sponsorship growth. As the curtain rises for the upcoming quarter, the company is anticipated to receive an added push from increased average spending per fan and a hike in ticket prices.
Venturing into specifics, our analysis forecasts an 8% year-over-year increase in concerts and ticketing revenues, reaching $3.67 billion and $799.1 million, respectively. However, sponsorship and advertising revenues may experience a 4.1% dip to land at $235.4 million.
Despite this promising forecast, escalated labor and operational costs, as well as other expenses, are expected to take the shine off LYV’s bottom line in the upcoming report. In fact, the company has been grappling with amplified venue costs and service fees, leading us to project a 9.8% year-over-year rise in direct operating expenses, totaling $3.61 billion.
What to Expect with Live Nation Entertainment, Inc.’s Stock
Insights from the Zacks Model
However, our well-hewn model doesn’t provide a concrete indication of an earnings beat for Live Nation this time around. According to our meticulous model, the coalescence of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) tilts the odds in favor of an earnings outperformance. Make sure to check out our Earnings ESP Filter to spot the best stocks to buy or sell before they’re revealed.
Earnings ESP: Currently, LYV has reported an Earnings ESP of -14.36%.
Zacks Rank: As for its Zacks Rank, LYV holds a Zacks Rank #3.
Stocks to Keep an Eye On
If you’re on the lookout for stocks in the Consumer Discretionary space that are likely to beat estimates this time around, consider the following:
Six Flags Entertainment Corporation (SIX) boasts an Earnings ESP of +21.85% and is currently carrying a Zacks Rank of 2. Meanwhile, Academy Sports and Outdoors, Inc. (ASO) is holding an Earnings ESP of +0.76% and possesses a Zacks Rank of 3. Lastly, Carnival Corporation & plc (CCL) is making waves with an Earnings ESP of +1.59% and holds a Zacks Rank of 2.
It’s worth keeping a close watch on these stocks. Across these companies, there are bright spots and opportunities, but also inherent risks that investors ought to carefully consider.
For more on what’s to come on the earnings front for these companies and others, don’t miss the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
