Live Nation Q3 Earnings Preview: Will Business Moat Outshine Taylor Swift Fiasco?

Ticketmaster’s parent, Live Nation Entertainment Inc LYV is set to report third-quarter earnings on Nov 2. Wall Street expects the company to report $1.27 in EPS and $6.94 billion in revenue.

Here’s how the business is doing, what analysts would be closely watching from this earnings report, and how the stock is placed against the Street’s current estimates.

Business & Financials: Live Nation Entertainment operates through its Concerts, Ticketing, and Sponsorship & Advertising segments. At the business level, the company sports solid financials and growth potential. It’s dominant position in the industry serves as a moat that gives it both the ability to command a premium from investors, and a solid bargaining position with its suppliers.

Over 2022 and most of H2 2023, Live Nation’s stock, however, has been impacted as its key offering. Ticketmaster was exposed to a class-action lawsuit that had accused the company of monopolistic practices in the live event & ticketing industry.

The suit was triggered following botched ticket sales for Taylor Swift‘s The Eras Tour. The company, consequently, apologized to Swift fans, and came out with reforms on fair ticketing.

Related: Live Nation Entertainment Proposes Concert Business Reforms After Taylor Swift Fiasco

Q3 Analysts’ Focus: Looking past the Swift fiasco, the company has an established position in the industry that is difficult for any competitor to imitate. After all, Ticketmaster is responsible for 70% of ticket sales in the U.S.

Given how the company sustained and grew from Covid’s impact, analysts may be looking past the Swift situation to focus on financial performance and growth metrics, as the company reports after market hours Thursday.

Ratings & Estimates: Analysts have a consensus Buy rating on the stock with a price target of $99.16. Analyst Eric Handler of Roth MKM rates the stock Neutral with a price target of $85. Guggenheim’s Curry Baker rates LYV a Buy with a price target of $125.

Price Action: Shares of Live Nation were trading higher by 2.4% to $82.35 at the time of publication Thursday. The stock’s 52-week range lies between $64.25 and $101.74.

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