Global music entertainment company Warner Music Group (NASDAQ:WMG) will be reporting earnings this Thursday morning. Here’s what investors should know.
Warner Music Group missed analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $1.48 billion, flat year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ Recorded Music revenue estimates.
Is Warner Music Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Warner Music Group’s revenue to grow 2.4% year on year to $1.59 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Warner Music Group has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Warner Music Group’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. News Corp posted flat year-on-year revenue, beating analysts’ expectations by 1%, and Scholastic reported revenues up 7%, topping estimates by 2.8%. Scholastic traded up 23.9% following the results.
Read our full analysis of News Corp’s results here and Scholastic’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Warner Music Group is up 1.6% during the same time and is heading into earnings with an average analyst price target of $33.06 (compared to the current share price of $29.88).
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