- Warner Music’s 3rd Quarter revenue was $1.55 billion, down 0.6% year-over-year, falling short of the $1.57 billion estimate.
- Recorded Music revenue was $1.25 billion, a decrease of 2.4% year-over-year, and below the $1.26 billion estimate.
- Music Publishing revenue rose by 7.8% year-over-year to $305 million, slightly missing the estimate of $305.9 million.
- Earnings per share (EPS) increased to 27 cents from 23 cents year-over-year.
- Operating profit grew by 9.5% year-over-year to $207 million but did not meet the $212.7 million estimate.
- The operating margin improved to 13.3%, up from 12.1% year-over-year, surpassing the estimated 13.1%.
- Analyst ratings: 12 buy, 7 hold, and 1 sell.
Warner Music Group on Smartkarma
Analysts at Baptista Research have been closely following Warner Music Group’s trajectory on Smartkarma, highlighting the company’s increasing presence in dynamic music markets. In their report titled “Warner Music Group: A Tale Of Increasing Presence in Dynamic Music Markets! – Major Drivers,” the research sheds light on the company’s impressive 7% revenue growth, with Recorded Music and Music Publishing segments showing increases of 4% and 19% respectively. Baptista Research delves into factors influencing the company’s stock price and conducts a thorough valuation using a Discounted Cash Flow methodology, incorporating scenario analysis for a nuanced view of the investment landscape.
In another bullish report by Baptista Research titled “Warner Music Group: Are Its New Investments In Tech & AI Helping Them Become More Competitive? – Major Drivers,” the analysts emphasize the company’s positive Q1 earnings, showcasing growth in both Recorded Music and Music Publishing divisions. While Warner Music Group continues to deliver record high quarterly revenue, the company is also strategically investing in technology and AI to enhance its competitiveness in the ever-evolving music industry landscape. This proactive approach demonstrates Warner Music Group’s commitment to innovation and growth.
A look at Warner Music Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Warner Music Group Corp. is a music recording and publishing company that offers a range of services globally. According to Smartkarma Smart Scores, the company has received mixed ratings in different areas. With a high score in Growth and Momentum, Warner Music Group is positioned well for future expansion and shows positive market dynamics. However, the scores for Value and Resilience are lower, indicating potential weaknesses in terms of financial value and risk management. On the bright side, the Dividend score shows a moderate level of return on investment for shareholders. Despite some areas of concern, the strong Growth and Momentum scores suggest a promising outlook for Warner Music Group in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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