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What to Expect from Live Nation (LYV) this Earnings Season?

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Live Nation Entertainment, Inc.LYV is scheduled to report fourth-quarter and full-year 2016 results on Feb 23, after the market closes .

Last quarter, Live Nation posted a positive earnings surprise of 2.08%. In fact, the company has surpassed earnings estimates in three of the past four quarters, with an average beat of 11.84%.

Let's see how things are shaping up for this announcement.

Live Nation Entertainment, Inc. Price and EPS Surprise

Live Nation Entertainment, Inc. Price and EPS Surprise | Live Nation Entertainment, Inc. Quote

Factors Likely to Influence Fourth-Quarter Results

Live Nation operates through four segments - Concerts, Ticketing, Artist Nation, and Sponsorship & Advertising. Over the past few quarters, all these segments - especially Concerts - have been witnessing revenue growth backed by higher tickets sales. We expect this trend to have continued in the to-be-reported quarter as well. Additionally, various digital initiatives undertaken by the company are likely to improve the ticket booking experience and further drive fourth-quarter revenues.

Furthermore, Live Nation's ticketing business operates under the well-known brand, Ticketmaster, which has been posting solid revenues over the past few quarters. The company also boasts a significant presence in this high-margin agency business where it charges a fee for selling tickets on behalf of its clients. Thus, we believe that the revenue growth momentum in the Ticketing segment will continue in the to-be reported quarter.

In fact, for full-year 2016, the company expects to post record top- and bottom-line results overall and for each of its core businesses.

However, unfavorable foreign currency translations that are mostly driven by the pound devaluation and sluggishness in the overall macro environment might dent revenues.

Earnings Whispers

Our proven model does not conclusively show that Live Nation is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.

Zacks ESP : Live Nation has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 58 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank : Live Nation has a Zacks Rank #4 (Sell).

Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Extended Stay America, Inc. STAY has an Earnings ESP of +21.43% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Pinnacle Entertainment, Inc. PNK has an Earnings ESP of +57.14% and a Zacks Rank #3.

Tribune Media Company TRCO has an Earnings ESP of +4.44% and a Zacks Rank #3.

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Pinnacle Entertainment, Inc. (PNK): Free Stock Analysis Report

Tribune Media Company (TRCO): Free Stock Analysis Report

Live Nation Entertainment, Inc. (LYV): Free Stock Analysis Report

Extended Stay America, Inc. (STAY): Free Stock Analysis Report

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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.


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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