With the company potentially at an important milestone, we thought we would take a closer look Live Nation Entertainment, Inc. (NYSE: LYV) future prospects. Live Nation Entertainment, Inc. operates as a live entertainment company. With the latest loss of US $ 1.7 billion and a year-over-year loss of US $ 1.8 billion, the US $ 20 billion market-cap company amplified its loss by moving further away from its target balance. Since the road to profitability is the topic of concern to investors at Live Nation Entertainment, we decided to assess market sentiment. In this article, we’ll discuss the company’s growth expectations and when analysts expect it to become profitable.
Check out our latest analysis for Live Nation Entertainment
According to the 14 industry analysts covering Live Nation Entertainment, the consensus is that the breakeven point is near. They predict that the company will suffer one final loss in 2021, before generating positive profits of US $ 243 million in 2022. Therefore, the company is expected to break even in just over a year. How fast will the company need to grow each year to reach a break-even point by 2022? Looking back at analysts’ estimates, it turns out that they expect the company to grow 58% on average year-on-year, indicating high analyst confidence. If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
Since this is a high-level look, we won’t go into details of Live Nation Entertainment’s upcoming projects, but keep in mind that in general, a high growth rate will not go into detail. This is not unusual, especially when a company is in an investment period.
One thing we would like to highlight with Live Nation Entertainment is that it currently has negative equity on its balance sheet. The accounting methods used to deal with losses accumulated over time can cause this. In effect, liabilities are carried forward until their cancellation. These losses tend to occur on paper only, however, in other cases this can be a warning.
There are too many aspects of Live Nation Entertainment to cover in one short article, but the fundamentals of the business can all be found in one place – Live Nation Entertainment’s company page on Simply Wall St. We. have also put together a list of key factors you should consider:
- Evaluation: What is Live Nation Entertainment worth today? Has the potential for future growth already been factored into the price? The intrinsic value infographic in our free research report helps to visualize whether Live Nation Entertainment is currently being poorly valued by the market.
- Management team: An experienced management team at the helm increases our confidence in the company – look at who sits on the Live Nation Entertainment board and the CEO’s background.
- Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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