Live Nation Q4 Earnings Beat, Revenue Declines
Key Metrics:
* Revenue: $5.68 billion (2.7% YoY decline)
* Adjusted Operating Income: $157.3 million (2.8% margin)
* Free Cash Flow: -$39.6 million
Highlights:
* Revenue exceeded analyst estimates by 1.4%.
* Annualized revenue growth over the last two years reached 17.8%, outperforming its five-year trend.
* Operating margin declined to -4.2%.
* Despite revenue decline, sell-side analysts forecast 14.5% revenue growth over the next 12 months.
Company Overview:
Live Nation (NYSE: LYV), owner of Ticketmaster and organizer of EDC music festival, specializes in live event promotions, venue management, and ticketing services.
Sales Performance:
Over the last five years, Live Nation's sales grew at a 14.9% compounded annual growth rate. This growth trajectory is satisfactory but falls short of industry benchmarks.
Cash Profitability:
Live Nation has exhibited weak cash profitability, with free cash flow margins averaging 6.1% over the last two years. In Q4, the company broke even on a free cash flow basis. Analysts estimate the free cash flow margin to remain at 5.4% over the next year.
Conclusion:
Live Nation's Q4 revenue outperformance is promising. However, the overall report points to a mixed quarter. Investors should carefully consider the company's valuation, business qualities, and recent performance before making investment decisions.