Warner Music Group (WMG) Q1 Earnings: What To Expect

Radek Strnad /
2024/05/08 3:04 am EDT

Global music entertainment company Warner Music Group (NASDAQ:WMG) will be reporting results tomorrow before market open. Here's what you need to know.

Warner Music Group beat analysts' revenue expectations by 4.6% last quarter, reporting revenues of $1.75 billion, up 17.5% year on year. It was a mixed quarter for the company, with a decent beat of analysts' Music Publishing revenue estimates but a miss of analysts' earnings 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 5.9% year on year to $1.48 billion, improving from the 1.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.

Warner Music Group Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Warner Music Group has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.6% on average.

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. fuboTV delivered year-on-year revenue growth of 24%, beating analysts' expectations by 5.5%, and Disney reported revenues up 1.2%, in line with consensus estimates. fuboTV traded down 9.4% following the results.

Read our full analysis of fuboTV's results here and Disney's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 2.1% on average over the last month. Warner Music Group's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $39.4 (compared to the current share price of $35.48).

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