Live Nation posts Q2 beat on strong concert demand; shares slide
LYV•Live Nation tops estimates on concert demand
Live Nation Entertainment's LYV.N shares down 6% to $172.48 on Friday despite quarterly results that surpassed Wall Street's expectations.
LYV late Thursday reported Q2 revenue grew 9% year over year to $7.67 billion, beating consensus of $7.56 billion, per LSEG, driven by strong global demand for concerts and live events.
Concert sales, which comprise more than 80% of LYV's top line, rose 8%.
Adjusted EPS of $1.05 handily beat the $0.66 modeled by analysts.
The company said concerts adjusted operating income decreased 14% year over year to $310 million due to timing of stadium shows, venue pre-opening costs, and investments in new international festivals.
At least three brokers raised price targets after the results: Deutsche Bank to $205 from $185; Bernstein to $215 from $200; Oppenheimer to $210 from $200.
Of 24 brokers covering the stock, the recommendation breakdown is 6 "strong buy", 12 "buy", 5 "hold", 1 "sell"; median PT $195.
With the decline, the stock is up about 21% year to date, well outperforming the roughly 8.5% gain in the S&P 500 .SPX. The stock is about 8% below its record intraday high of $188 achieved on July 6.
