Live Nation Entertainment (LYV) - Get Live Nation Entertainment, Inc. Report shares soared Friday, after the entertainment conglomerate swung to a profit in the third quarter and reported higher-than-expected revenue.
Demand that built up during the pandemic generated ticket-price increases and more spending at live events for t-shirts, hot dogs, etc.
Live Nation, which owns Ticketmaster and Live Nation Concerts, posted net income of $46.9 million, or 19 cents a share, for the third quarter, reversing a loss of $528.9 million, or $2.45 a share, in the pandemic-depressed quarter a year ago.
Revenue skyrocketed by a factor of almost 15, to $2.7 billion from $184 million a year earlier. The latest figure blew away the FactSet analyst consensus of $1.92 billion.
Live Nation’s stock recently traded at $121.92, up 13%. It has skyrocketed 53% in the last three months amid the rebound in live entertainment, compared to a 7% gain for the S&P 500.
Morningstar analyst Neil Macker expressed optimism for the company Thursday.
“While we remain concerned about the lingering threat of new lockdown restrictions due to the spread of the delta variant, the firm appears to be on track to a recovery to pre-pandemic levels,” he wrote in a commentary.
“We are maintaining our narrow moat and plan to raise our $78 fair value estimate to account for the increasing strength of the pipeline and higher audience willingness to return than we expected.”
As for earnings, “Live Nation’s quarterly results rallied strongly versus last year as management’s focus on a return to scale over the summer worked to perfection,” he said.