What happened
Shares of entertainment stock Live Nation Entertainment (LYV -0.49%) jumped as much as 18.8% in trading on Friday after the company reported third-quarter 2021 financial results. Shares closed the day up 15.2%.
So what
Revenue exploded from just $184 million a year ago to $2.7 billion in the quarter and an operating loss of $504.4 million swung to a profit of $137.1 million. Net income was $46.9 million, or $0.19 per share.
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Analysts were only expecting revenue of $1.92 billion and a loss of $0.05 per share.
Management also said that indicators are pointing to a record 2022 as venues like amphitheaters, arenas, and stadiums are all up double-digits. That should bode well for the company's profitability for at least the next year.
Now what
Live events are booming now that vaccinations are readily available and people are more willing to go out in large numbers. Based on management's comments, it seems like people are willing to spend more on tickets than ever and beverage and food sales are up as well. This is one of the best reopening stocks and right now it's performing even better than investors were hoping. In 2022, we could see revenue and earnings continue their surge higher.
