Global music entertainment company Warner Music Group (NASDAQ:WMG) will be reporting earnings this Thursday afternoon. Here’s what investors should know.
Warner Music Group beat analysts’ revenue expectations last quarter, reporting revenues of $1.84 billion, up 10.4% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates.
Is Warner Music Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Warner Music Group’s revenue to grow 8.5% year on year, improving from its flat revenue in the same quarter last year.
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 multiple times over the last two years.
Looking at Warner Music Group’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 41.1%, beating analysts’ expectations by 11.3%, and Latham reported revenues up 5.3%, falling short of estimates by 1.6%. Rush Street Interactive traded up 16.6% following the results.
Read our full analysis of Rush Street Interactive’s results here and Latham’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 6% on average over the last month. Warner Music Group is up 7.8% during the same time and is heading into earnings with an average analyst price target of $36.18 (compared to the current share price of $28.05).
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