Live Nation Entertainment Inc. Stock Upgraded (LYV)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Live Nation Entertainment (NYSE: LYV) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 15.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, LYV's share price has jumped by 112.13%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LYV should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has increased to -$115.81 million or 47.61% when compared to the same quarter last year. In addition, LIVE NATION ENTERTAINMENT has also vastly surpassed the industry average cash flow growth rate of -11.36%.
  • LIVE NATION ENTERTAINMENT's earnings per share declined by 29.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, LIVE NATION ENTERTAINMENT reported poor results of -$0.87 versus -$0.46 in the prior year. This year, the market expects an improvement in earnings ($0.06 versus -$0.87).
  • Even though the current debt-to-equity ratio is 1.21, it is still below the industry average, suggesting that this level of debt is acceptable within the Media industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.84 is weak.

Live Nation Entertainment, Inc. operates as a live entertainment company. The company operates through Concerts, Ticketing, Artist Nation, and Sponsorship & Advertising segments. Live Nation Entertainment has a market cap of $4.35 billion and is part of the services sector and media industry. Shares are up 19.9% year to date as of the close of trading on Wednesday.

You can view the full Live Nation Entertainment Ratings Report or get investment ideas from our investment research center.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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