- Warner Music’s 4Q revenue reached $1.63 billion, surpassing expectations of $1.6 billion, marking a 2.8% year-over-year increase.
- Recorded Music revenue grew by 3.6% year-over-year to $1.34 billion, beating the $1.28 billion estimate.
- Music Publishing revenue decreased by 1% year-over-year to $295 million, below the expected $313.1 million.
- Earnings per share (EPS) fell to 8.0 cents from 29 cents compared to the previous year.
- Operating profit dropped by 33% year-over-year to $143 million, missing the $225.4 million estimate.
- The operating margin decreased to 8.8% from 13.4% year-over-year, falling short of the estimated 14.3%.
- Analyst recommendations include 12 buys, 6 holds, and 2 sells.
Warner Music Group on Smartkarma
Analysts at Baptista Research on Smartkarma are bullish on Warner Music Group, highlighting the company’s positive performance in the music industry. In one report titled “Warner Music Group: Benefitting From The Expanding Streaming Market! – Major Drivers,” the analysts noted the company’s resilience in the subscription streaming sector, which saw accelerated growth driven by increased subscriber numbers and price hikes. Another report, “Warner Music Group: A Tale Of Increasing Presence in Dynamic Music Markets! – Major Drivers,” emphasized WMG’s global influence and revenue growth of 7%, with Recorded Music and Music Publishing up by 4% and 19% respectively. Baptista Research conducted a thorough analysis, including a Discounted Cash Flow valuation, to assess the company’s future prospects.
A look at Warner Music Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| 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., a company specializing in music recording and publishing, maintains a promising long-term outlook based on its Smartkarma Smart Scores across different factors. With above-average scores for Growth and Momentum, Warner Music Group is positioned well for future expansion and market performance. The company’s focus on growth opportunities and sustained positive market momentum bodes well for its overall outlook.
Although scoring lower in Value and Resilience, Warner Music Group’s solid scores in Dividend and Growth indicate a strong foundation for potential investor returns and future profitability. The company’s diversified services, including merchandising, sponsoring, touring, and artist management, position it favorably in the global music industry. Warner Music Group’s overall Smart Scores suggest a positive trajectory for the company in the long run.
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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