The analysts report Live Nation Entertainment, Inc. (NYSE: LYV) today delivered a dose of negativity to shareholders by fundamentally revising their legal outlook for this year. Revenue and earnings per share (EPS) forecasts have been revised downwards, with analysts seeing gray clouds on the horizon.
After this downgrade, the twelve analysts at Live Nation Entertainment forecast revenues of $ 6.4 billion in 2021. This would be a significant sales improvement of 246% compared to the last 12 months. Losses are expected to decrease significantly, falling 59% to $ 3.29. Before the latest estimates, however, analysts had forecast sales of $ 7.3 billion and a loss of $ 1.96 per share in 2021. So there has been quite a change of opinion following recent consensus updates, with analysts taking a serious cut to their sales forecasts while anticipating a spike in losses per share.
Check out our latest analysis for Live Nation Entertainment
NYSE: LYV earnings and revenue growth March 6, 2021
The consensus price target rose 10% to $ 81.82, which clearly indicates the weaker revenue and EPS outlook shouldn’t weigh on the stock long term. However, setting a single price target can be unwise because the consensus target is effectively the average of the analyst price targets. As a result, some investors enjoy looking at the various estimates to see if there are different opinions about company valuation. Right now, the most bullish analyst rates Live Nation Entertainment at $ 100.00 per share, while the most bearish analyst rates it at $ 50.00. That’s a pretty wide spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the company.
Now, looking at the bigger picture, one of the ways we can understand these projections is by seeing how they measure up against both past performance estimates and industry growth estimates. For example, we’ve determined that Live Nation Entertainment’s growth rate is expected to accelerate significantly. Annual sales growth of 246% is forecast until the end of 2021. This is well above the historic decline of 0.09% per year over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in the industry are forecasting revenue growth of 15% per year. So it looks like Live Nation Entertainment is growing faster than its peers, at least for a while.
The bottom line
Most importantly, analysts have increased their estimates for loss per share for this year. Unfortunately, analysts have also downgraded their revenue estimates, although our data suggests that revenue is likely to outperform the broader market. The rising target price is a mystery, but with a serious cut to this year’s outlook, we wouldn’t be surprised if investors were a little suspicious of Live Nation Entertainment.
Still, the long-term prospects for the business are far more relevant than next year’s results. We have estimates – from several Live Nation Entertainment analysts – for the year 2025, which you can see for free on our platform here.
See company management, of course invest large sums of money in a stock can be just as useful as knowing if analysts are downgrading their estimates. You may also want to look for this free List of stocks that insiders are buying.
When you choose to trade with Live Nation Entertainment, you are using the lowest cost * platform ranked # 1 overall by Barrons Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds in 135 markets from a single integrated account.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
* Interactive brokers have been rated as Lowest Cost Brokers by StockBrokers.com. Annual online review 2020
Do you have any feedback on this article? Concerned about the content? Get in touch directly with us. Alternatively, you can also send an email to the editorial team (at) simplywallst.com.