A month has gone by since the last earnings report for Live Nation (LYV). Shares have added about 3.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Live Nation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Live Nation Q3 Earnings Surpass Estimates, Revenues Miss

Live Nation Entertainment’s third-quarter 2024 earnings surpassed the Zacks Consensus Estimate but revenues missed the same. The top and bottom lines declined from the prior-year quarter’s level.

The company shared its outlook on expanding growth opportunities, driven by an unprecedented summer concert season and a record-breaking show pipeline.

Despite the one-time accrual impacts on operating income, Live Nation anticipates achieving double-digit AOI growth in 2024. Also, it stated optimism for continued momentum into 2025, with a more extensive lineup of stadium, arena and amphitheater shows to meet high fan demand.

Q3 Earnings & Revenues

During the third quarter, the company reported adjusted earnings per share (EPS) of $1.66, surpassing the Zacks Consensus Estimate of $1.58 by 5.1%. In the year-ago quarter, the company reported an adjusted EPS of $1.93.

Revenues amounted to $7.7 billion, missing the consensus mark of $7.8 billion. The top line declined 6.2% year over year from $8.2 billion.

Segmental Discussion

Concerts: The segment’s revenues totaled $6.6 billion, down 6% year over year. AOI was $474.1 million, up 39% from the year-ago figure.

Ticketing: Segmental revenues amounted to $693.7 million, down 17% from the prior-year quarter level. AOI was $235.7 million, down 33% year over year.

Sponsorship & Advertising: Revenues from this segment totaled $390.3 million, up 6% from the year-ago quarter’s figure. AOI was $275.3 million, up 10% year over year.

Other Financial Information

Live Nation's cash and cash equivalents as of Sept. 30, 2024, totaled $5.5 billion, up from $6.23 billion as of Dec. 31, 2023. At the end of the third quarter, goodwill was $2.67 billion compared with $2.69 billion at the end of 2023. Net long-term debt came in at $5.67 billion compared with $5.46 billion as of Dec. 31, 2023.

At the end of the first nine months of 2024, net cash provided by operating activities was $680.1 million compared with $754.6 million reported in the year-ago period.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -12.49% due to these changes.

VGM Scores

Currently, Live Nation has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Live Nation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Live Nation is part of the Zacks Leisure and Recreation Services industry. Over the past month, Airbnb, Inc. (ABNB), a stock from the same industry, has gained 3.8%. The company reported its results for the quarter ended September 2024 more than a month ago.

Airbnb reported revenues of $3.73 billion in the last reported quarter, representing a year-over-year change of +9.9%. EPS of $2.13 for the same period compares with $2.39 a year ago.

Airbnb is expected to post earnings of $0.60 per share for the current quarter, representing a year-over-year change of -21.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -7.3%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Airbnb. Also, the stock has a VGM Score of D.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Airbnb, Inc. (ABNB) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research