NEW YORK (TheStreet) -- Shares of Live Nation Entertainment (LYV) - Get Report are up 7.07% to $27.56 in late-afternoon trading on Friday, reflecting the company's 2016 second-quarter results and record ticket sales.
After Thursday's market close, Live Nation Entertainment reported earnings of 13 cents, beating analysts' expectations of 8 cents.
The company's revenue rose by 23% to $2.2 billion, higher than analysts' predictions of $1.88 billion.
As of mid-July, the Beverly Hills-based company sold over 50 million concert tickets this year, which is up 17% year-over-year.
During the second quarter alone, the company's tickets sales rose over 9% year-over-year to 40.2 million.
CEO Michael Rapino said he expects another record year for 2016. "We continue to be by far the leading promoter in the world, having created a business model that is effective at attracting artists from the club to the stadium level, enabling us to then make money in our high margin on-site, ticketing and advertising businesses," he said in the announcement.
Live Nation is benefiting from "the demand by recording companies and artists to go on tour as a solution to thwart streaming revenue losses," Albert Fried & Co. analysts said, according to the Wall Street Journal.
Shares of Liberty Media Group (LMCA), the company's largest stockholder, are also surging by 5.74% to $22.75 in late-afternoon trading on Friday.
Live Nation Entertainment was formed from the merger of Live Nation and Tciketmaster in 2010.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate LIVE NATION ENTERTAINMENT as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: LYV