Live Nation Gears Up to Report Q1 Earnings: What's in the Offing?

Live Nation Entertainment, Inc. LYV is scheduled to report first-quarter 2025 results on May 1, after market close. In the last reported quarter, the company delivered an earnings surprise of 147.1%.

Q1 Estimates of LYV

The Zacks Consensus Estimate for the first-quarter loss has widened to 32 cents per share from a loss of 27 cents in the past seven days. In the prior-year quarter, the company reported an adjusted loss per share of 53 cents. The consensus mark for revenues is pegged at $3.49 billion, indicating an 8.3% year-over-year decline. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Factors to Note Ahead of LYV’s Q1 Results

Live Nation is expected to report a year-over-year decline in first-quarter revenues, primarily due to weaker performance in its Concerts segment. However, this might be partially offset by strong ticket sales, solid growth in sponsorships and increased average spending per fan. The company also continues to invest in expanding music-centric venues, aiming to support artists and capture growing global fan demand.

For first-quarter 2025, our model predicts Concerts revenues to decrease 2.9% year over year to $2.8 billion. However, we expect Sponsorship and Advertising as well as Ticketing revenues to increase 2.9% and 9.3%, respectively, year over year to $217.5 million and $790.3 million.

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. The company has been cautious of cost overruns related to the development and expansion of live music venues.

What the Zacks Model Unveils for LYV

Our proven model does not conclusively predict an earnings beat for Live Nation 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. This is not the case here.

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

LYV’s Earnings ESP: LYV has an Earnings ESP of -18.75% at present.
 
LYV’s Zacks Rank: LYV currently holds a Zacks Rank #3.

Stocks With the Favorable Combination

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to beat estimates this time around.

Hilton Grand Vacations Inc. HGV has an Earnings ESP of +3.59% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hilton Grand Vacations is expected to register a 48.4% decline in earnings for the to-be-reported quarter. Its earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and beat on one occasion. Hilton Grand Vacations’ average earnings miss was 15.2%.

Choice Hotels International, Inc. CHH currently has an Earnings ESP of +0.94% and a Zacks Rank of 3.

In the to-be-reported quarter, Choice Hotels’ earnings are expected to increase 10.2%. Choice Hotels’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 7.5%.

Flutter Entertainment plc FLUT currently has an Earnings ESP of +12.41% and a Zacks Rank of 3.

In the to-be-reported quarter, Flutter Entertainment’s earnings are expected to increase 1,380%. Flutter Entertainment’s earnings beat the Zacks Consensus Estimate in the preceding quarter by 88.5%.

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This article originally published on Zacks Investment Research (zacks.com).

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