Live Nation reported file outcomes. Investors, for now, aren’t satisfied.

William Blair analyst Ryan Sundby, in a analysis word on Friday, stated that “issues appear to heart on the concept 2022 may symbolize peak earnings energy as a ‘reopening play.’”

But he said that “we would caution investors against lumping Live Nation in alongside other companies that have benefited from a COVID related lift in pent-up spending given the global opportunity to continue to unlock latent demand and drive higher ancillary spending.”

However, LightShed Partners analyst Brandon Ross also told Barron’s that the inventory, in the intervening time, suffered from a “massive regulatory overhang.” But he stated the inventory may transfer larger as soon as that overhang lifts.

Live Nation on Thursday stated it completed 2022 with gross sales up 44% to $16.7 billion — by far its finest ever. Its fourth-quarter gross sales had been higher than anticipated, though it additionally misplaced extra per share than what FactSet forecasts referred to as for.

However, executives stated there was “no sign of any slowdown” in demand for 2023. And as rising costs — together with for live performance tickets — reduce into client financial savings, they stated that “fans continue to prioritize concerts.”

Still, through the firm’s earnings name, executives spent a variety of time fielding questions on friction with regulators, following Ticketmaster’s implosion final 12 months throughout a pre-sale of Taylor Swift live performance tickets and allegations of cramming “junk fees” into gross sales. Live Nation’s Chief Financial Officer, Joe Berchtold, confronted additional questions on Ticketmaster’s maintain over the live performance business from lawmakers final month, and blamed the pre-sale debacle on a deluge of bot visitors.

Berchtold, throughout Thursday’s name, stated venues continued to work with Live Nation as a result of “we have the best software platform for them.” And Chief Executive Michael Rapino insisted that “the ticketing industry is more competitive than ever, and our market share has gone down, not up,” since Live Nation’s merger with Ticketmaster in 2010.

“Because of the competitive bidding process, venues regularly take more of the economics on every renewal, as they set and keep a majority of the service fees,” he stated.

Live Nation owns, operates, or has a stake in 338 venues around the globe. Executives, through the name, stated they deliberate a much bigger push up forward to enhance their repute. They additionally expressed help for laws that, they stated, would permit artists to resolve resale guidelines, ban speculative tickets and crack down on bot exercise, amongst different issues.

“I think we’ve been too passive in our approach on how we need to educate and act,” Rapino stated through the name. “This week was the start of where we’re going to start moving. You’re going to see us lean forward a lot more on education, reform.”

Those remarks are more likely to be met with skepticism, because the live performance business’s comeback disproportionately rewards greater artists, greater venues and greater corporations, whereas smaller artists battle with tools and transportation shortages, the pandemic and better prices.

For some on Wall Street, although, the outcomes and the executives’ remarks on the decision had been sufficient.

“Overall, we see the quarter as easing investor concerns related to the economy and regulatory, and see room for shares to re-rate higher as confidence is gained on these points,” JPMorgan analysts stated.

Following Friday’s transfer decrease, Live Nation inventory is down 44.7% over the previous 12 months. The S&P 500 index
SPX,
-1.05%
has fallen 7.4% over the identical interval.