Live Nation (LYV) Q1 Earnings Miss, Revenues Top Estimates

Live Nation Entertainment, Inc. LYV reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Revenues surpassed the consensus estimate for the eighth straight quarter. The top line grew but the bottom line dwindled year over year.

The results of the company reflect robust global fan demand for live events resulting in increased ticket sales. Also, it continues to benefit from the solid performance of Ticketmaster and an increase in fan spending. In the first quarter, 22.9 million fans attended more than 11,200 events.

The industry is expanding its concert offerings and building more venues. Live Nation anticipates continued growth, aiming for double-digit increases in adjusted operating income in 2024. Also, the company expects fan profitability to compound by double digits in the coming years.

Following the results, the company’s shares rose 2% in the after-hours trading session on May 2.

Earnings & Revenues

In the first quarter of 2024, the company reported an adjusted loss per share of 53 cents, wider than the Zacks Consensus Estimate of a loss of 20 cents per share. In the year-ago quarter, the company reported an adjusted loss per share of 25 cents.

Live Nation Entertainment, Inc. Price, Consensus and EPS Surprise

Live Nation Entertainment, Inc. Price, Consensus and EPS Surprise

Live Nation Entertainment, Inc. price-consensus-eps-surprise-chart | Live Nation Entertainment, Inc. Quote

Revenues amounted to $3.8 billion, beating the Zacks Consensus Estimate of $3.29 billion by 15.5%. The top line increased 21% year over year from $3.13 billion.

Segmental Discussion

Concerts: The segment’s revenues totaled $2.88 billion, up 26% year over year. Our model predicted the metric to climb 5.4% year over year. Adjusted operating income was $3.1 million, up 287.5% from the year-ago figure. Total estimated events rose to approximately 11,200, up from the prior year’s figure of about 9,900 events. Our model predicted total events to be 10,327.

Ticketing: Segmental revenues amounted to $723.2 million, up 7% from the prior-year quarter. Our model estimated the metric to increase 2.5% year over year. Adjusted operating income was $284.1 million, up 5% year over year.  The total estimated tickets sold rose to 155,010 from 145,466 reported in the prior-year quarter.

Sponsorship & Advertising: Revenues from this segment totaled $211.3 million, up 24% from the year-ago quarter’s figure. We estimated the metric to jump 20.2% year over year. Adjusted operating income was $130 million, up 36% year over year.

Other Financial Information

Live Nation's cash and cash equivalents as of Mar 31, 2024, totaled $6.5 billion compared with $6.23 billion as of Dec 31, 2023. At the end of the first quarter of 2024, goodwill was $2.7 billion compared with $2.69 billion at the end of 2023. Net long-term debt decreased to $5.08 billion from $5.46 billion as of Dec 31, 2023.

At the end of the first quarter of 2024, net cash provided by operating activities was $988.9 million compared with $1.16 billion reported in the year-ago period.

Zacks Rank & Recent Consumer Discretionary Releases

Live Nation currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Norwegian Cruise Line Holdings Ltd. NCLH reported mixed first-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. On the other hand, the top and the bottom lines increased on a year-over-year basis.

The quarterly results showcase robust demand for the company’s products and offerings, resulting in record bookings. This uptrend aided the company to continue its all-time high booked position and an unprecedented level of advance ticket sales through 2024. Also, its ongoing margin enhancement initiative drove continued improvement in operating costs, thus benefiting the bottom line. Owing to the improving trend, the company raised its adjusted EBITDA and adjusted earnings per share outlook for 2024.

Marriott International, Inc. MAR reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom lines increased on a year-over-year basis.

 The company reported benefits from strong revenue per available room gains, net room growth and an asset-light business model. Also, strong contributions from the group business added to the positives. The company reported strength in The Marriott Bonvoy loyalty program, comprising 203 million members as of the first-quarter end. It also emphasized the launch of the MGM Collection, integrating nearly 37,000 rooms into the company's portfolio.

MGM Resorts International MGM reported impressive first-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom lines increased on a year-over-year basis.

The upside was driven by solid performances at MGM China and luxury resort properties in Las Vegas. MGM China's net revenues surged 71% year over year to $1.06 billion. The upside was attributed to the ramp-up of operations following the removal of COVID-related travel and entry restrictions in the prior year period. Net revenues at Las Vegas Strip Resorts were $2.26 billion, up 3.6% year over year, primarily driven by a rise in ADR.

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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.

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