- Warner Music’s second quarter revenue came in at $1.49 billion, marking a 6.8% increase year over year, meeting the estimate of $1.48 billion
- The company’s recorded music revenue was $1.19 billion, a 4% increase from the previous year, slightly below the estimated $1.2 billion
- On the other hand, Warner Music’s publishing revenue outperformed estimates, with $306 million marking a 19% annual increase against the estimate of $287.2 million
- The EPS were 18c, a significant growth compared to 6.0c from the previous year
- However, operating profit decreased by 4% year over year, landing at $119 million, below the estimate of $136.4 million
- Similarly, the operating margin was 8%, a decrease from 8.9% the previous year, and under the 10.6% estimate
- With regards to investor recommendations, there are 10 buys, 9 holds, and 1 sell for Warner Music
Warner Music Group on Smartkarma
Analyst coverage on Warner Music Group by Baptista Research on Smartkarma highlights the company’s strong Q1 earnings growth in both Recorded Music and Music Publishing segments. In the report titled “Warner Music Group: Are Its New Investments In Tech & AI Helping Them Become More Competitive? – Major Drivers,” the analysts point out the record high quarterly revenue generated by these divisions. Despite the positive performance, Warner Music Group aims to adapt to the evolving music industry landscape to maintain its competitive edge.
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., a music recording and publishing company, is poised for a promising long-term outlook based on a comprehensive analysis of its key factors. With high scores in Growth and Momentum, the company’s future prospects appear bright, indicating strong potential for expansion and positive market momentum. While Value and Resilience scores show some room for improvement, Warner Music Group’s solid Dividend score adds to its attractiveness for investors seeking steady income.
Overall, Warner Music Group’s strong performance in Growth and Momentum underscores its position for sustainable growth in the music industry. With a diverse range of services including music recording, merchandising, and artist management, the company is well-positioned to capitalize on global customer demand. While there are areas for enhancement, the company’s overall outlook remains positive, reflecting confidence in its ability to navigate market opportunities and challenges effectively.
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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