Global music entertainment company Warner Music Group (NASDAQ:WMG) will be announcing earnings results tomorrow morning. Here's what investors should know.
Warner Music Group met analysts' revenue expectations last quarter, reporting revenues of $1.49 billion, up 6.8% year on year. It was a weak quarter for the company, with 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 be flat year on year at $1.58 billion, slowing from the 9.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 10 downward revisions over the last 30 days. 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 Q2 results, giving us a hint as to what we can expect. Scholastic's revenues decreased 10.1% year on year, missing analysts' expectations by 14%, and Rush Street Interactive reported revenues up 33.5%, topping estimates by 9.4%. Scholastic traded down 19.9% following the results while Rush Street Interactive was up 7.9%.
Read our full analysis of Scholastic's results here and Rush Street Interactive's results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Warner Music Group is down 5.1% during the same time and is heading into earnings with an average analyst price target of $37.7 (compared to the current share price of $28.96).
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