The full-year results for Live Nation Entertainment, Inc. (NYSE:LYV) were released last week, making it a good time to revisit its performance. The results overall were pretty much dead in line with analyst forecasts; revenues were US$1.9b and statutory losses were US$8.12 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Live Nation Entertainment
Following the latest results, Live Nation Entertainment’s twelve analysts are now forecasting revenues of US$7.11b in 2021. This would be a huge 282% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 69% to US$2.53. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$7.34b and losses of US$1.83 per share in 2021. So it’s pretty clear the analysts have mixed opinions on Live Nation Entertainment after this update; revenues were downgraded and per-share losses expected to increase.
The average price target lifted 7.4% to US$76.36, clearly signalling that the weaker revenue and EPS outlook are not expected to weigh on the stock over the longer term. The consensus price target is just an average of individual analyst targets, so – it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Live Nation Entertainment at US$100.00 per share, while the most bearish prices it at US$50.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Live Nation Entertainment is forecast to grow faster in the future than it has in the past, with revenues expected to grow 282%. If achieved, this would be a much better result than the 0.09% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 15% per year. So it looks like Live Nation Entertainment is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded their revenue estimates, although industry data suggests that Live Nation Entertainment’s revenues are expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. We have forecasts for Live Nation Entertainment going out to 2025, and you can see them free on our platform here.
You still need to take note of risks, for example – Live Nation Entertainment has 1 warning sign we think you should be aware of.
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