Live Nation Earnings Preview

Investors never know what to expect for Live Nation (NYSE: LYV  ) , as it has wavered between topping and missing analysts estimates during the past fiscal year. The company will unveil its latest earnings on Thursday, Feb. 23. Live Nation Entertainment is a producer of live music concerts.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Live Nation with two of three analysts rating it hold. Analysts don't like Live Nation as much as competitor Madison Square Garden overall. Three out of eight analysts rate Madison Square Garden a buy compared to one of three for Live Nation.
  • Revenue forecasts: On average, analysts predict $1.09 billion in revenue this quarter. That would represent a decline of 12.1% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is a loss of $0.29 per share. Estimates range from a loss of $0.35 to a loss of $0.23.

What our community says:
CAPS All-Stars are solidly backing the stock, with 83.1% granting it an "outperform" rating. The greater community agrees with the All-Stars, as 86% give it a rating of "outperform." Live Nation's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
A year-over-year revenue decrease last quarter snaps a streak of three consecutive quarters of revenue increases.

Now, a look at how efficient management has been at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The company's net margin has been increasing year over year for the last three quarters. Net margin reflects what percentage of revenue becomes profit. Here are Live Nation's reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

28.1%

27.0%

35.6%

28.2%

Operating Margin

5.9%

3.4%

(8.5%)

(8.3%)

Net Margin

2.9%

0.9%

(5.7%)

(11.3%)

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Earnings estimates provided by Zacks.

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