It was about a week ago that I highlighted a bullish stance on Live Nation (LYV) as it prepared to go into its Q2 earnings. In the article Live Nation Could Entertain Portfolio Profits, I broke down the Live Nation business model, and even offered up a little secret that made me even more bullish on the company.
This week Live Nation did indeed report its Q2 earnings, and the result was the company surpassing street expectations essentially across the board.
The street was expecting the company to report an EPS profit of 11 cents. The company came in at 30 cents. Revenue was ahead of analysts' expectations as well. The street was expecting revenue of $1.63 billion and Live Nation delivered $1.68 billion. The Live Nation story is just getting started, and the company is on a pace for its best year ever.
If you have ever bought a concert ticket you know that you have to act fast. Well, the same mantra may well apply to Live Nation. The stock has more than doubled in the past year and is up almost 80% in 2013. The secret of Live Nation will not be a secret much longer. In fact, after the call analyst Albert Fried raised his price target to $33 from $18. The equity currently trades at $18.30, up from the $16.71 it was at when I featured it. Live Nation is building incrementally and continued improvement is in the cards
We saw continued strong consumer demand for the live business over the past quarter, and further accelerated our top line growth by continuing to build share in our concerts and ticketing businesses. As a result, we are well on our way to achieving our 2013 goals with strong performance across our core business segments with revenue growth of 8% in the second quarter as compared to last year. The positive trend in our concert ticket sales from the beginning of the year has continued with concert attendance up 8% for the quarter.
There is still room in Live Nation to move. With such an impressive Q2, it makes me excited to think about how well Q3 will look. Current expectations are for 39 cents in earnings and revenue of just over $2 billion. I am expecting the street to revise these metrics upward based on the performance in Q2. Stay Tuned.