Brokers predict that Warner Music Group Corp. (NASDAQ:WMG – Get a rating) will post sales of $1.44 billion for the current quarter, according to Zacks. Five analysts have made estimates of Warner Music Group earnings, with estimates ranging from $1.37 billion to $1.48 billion. Warner Music Group posted sales of $1.34 billion in the same quarter last year, which would indicate a positive growth rate of 7.5% year over year. The company is expected to release its next earnings report on Monday, January 1.
On average, analysts expect Warner Music Group to report annual sales of $5.90 billion in the current fiscal year, with estimates ranging from $5.79 billion to $6.00 billion. . For the next fiscal year, analysts expect the company to post sales of $6.51 billion, with estimates ranging from $6.30 billion to $6.75 billion. Zacks sales averages are an average based on a survey of sell-side analysts who cover Warner Music Group.
Warner Music Group (NASDAQ:WMG – Get a rating) last released its quarterly results on Tuesday, May 10. The company reported earnings per share of $0.18 for the quarter, missing the consensus estimate of $0.21 per ($0.03). Warner Music Group had a net margin of 6.45% and a return on equity of 362.14%. The company posted revenue of $1.38 billion in the quarter, compared to analysts’ estimates of $1.37 billion. In the same quarter last year, the company achieved EPS of $0.22. The company’s quarterly revenue increased by 10.1% compared to the same quarter last year.
WMG has been the subject of several analyst reports. Zacks Investment Research downgraded the shares of Warner Music Group from a “hold” rating to a “sell” rating in a Thursday, May 12 research note. Credit Suisse Group lowered its price target on Warner Music Group shares from $50.00 to $45.00 and set an “outperform” rating for the company in a Wednesday, Feb. 9 report. Deutsche Bank Aktiengesellschaft launched coverage on Warner Music Group shares in a Friday, March 11 research note. They issued a “buy” rating and a price target of $42.00 for the company. Truist Financial cut its price target on Warner Music Group shares from $45.00 to $40.00 in a Monday, May 9 research note. Finally, Barclays cut its price target on Warner Music Group shares from $49.00 to $37.00 in a Wednesday, May 11 report. Three investment analysts gave the stock a sell rating, one gave the company a hold rating and eight gave the company a buy rating. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $44.62.
Shares of WMG opened at $27.96 on Thursday. The company has a market capitalization of $14.39 billion, a PE ratio of 39.38, a PEG ratio of 1.15 and a beta of 1.32. The company’s 50-day moving average is $33.04 and its 200-day moving average is $37.74. Warner Music Group has a fifty-two week low of $24.39 and a fifty-two week high of $50.23. The company has a debt ratio of 22.13, a current ratio of 0.61 and a quick ratio of 0.58.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 1. Shareholders of record on Monday, May 23 will receive a dividend of $0.15. The ex-dividend date is Friday, May 20. This represents a dividend of $0.60 on an annualized basis and a dividend yield of 2.15%. Warner Music Group’s payout ratio is 84.51%.
In other news, Executive Lincoln E. Benet sold 10,000 shares of Warner Music Group in a trade dated Wednesday, March 30. The stock was sold at an average price of $38.25, for a total transaction of $382,500.00. The transaction was disclosed in a legal filing with the SEC, accessible via the SEC website. Additionally, director Lincoln E. Benet sold 20,000 shares of the company in a transaction dated Monday, February 28. The shares were sold at an average price of $35.64, for a total value of $712,800.00. Disclosure of this sale can be found here. Insiders sold 60,000 shares of the company worth $2,165,000 during the last quarter. 76.57% of the shares are currently held by insiders of the company.
A number of hedge funds have recently bought and sold WMG shares. Eagle Bay Advisors LLC increased its equity stake in Warner Music Group by 100.0% during the third quarter. Eagle Bay Advisors LLC now owns 600 shares of the company worth $26,000 after purchasing an additional 300 shares in the last quarter. CIBC Asset Management Inc. increased its stake in Warner Music Group by 2.0% in the fourth quarter. CIBC Asset Management Inc. now owns 21,001 shares of the company worth $907,000 after acquiring 419 additional shares in the last quarter. Advisor Group Holdings Inc. increased its stake in Warner Music Group shares by 5.7% in the first quarter. Advisor Group Holdings Inc. now owns 7,950 shares of the company valued at $647,000 after purchasing an additional 427 shares during the period. Stephens Inc. AR increased its stake in shares of Warner Music Group by 8.0% during the fourth quarter. Stephens Inc. AR now owns 5,847 shares of the company valued at $252,000 after acquiring an additional 432 shares during the period. Finally, Oppenheimer Asset Management Inc. increased its stake in Warner Music Group shares by 7.0% during the first quarter. Oppenheimer Asset Management Inc. now owns 9,024 shares of the company valued at $342,000 after acquiring an additional 590 shares during the period. 22.29% of the shares are currently held by hedge funds and other institutional investors.
Warner Music Group Company Profile (Get a rating)
Warner Music Group Corp. operates as a music entertainment company in the United States, United Kingdom, Germany and internationally. The Company operates through the Recorded Music and Music Publishing segments. The Recorded Music segment is involved in the discovery and development of recording artists, as well as the related marketing, promotion, distribution, sale and licensing of music created by such recording artists; markets its music catalog through compilations and reissues of previously released music and video titles, as well as previously unreleased material; and operates primarily through a collection of record labels, such as Warner Records and Atlantic Records, as well as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin’ Records, Warner Classics and Warner Music Nashville.
For more information on Zacks Investment Research’s research offerings, visit Zacks.com
This instant alert was powered by MarketBeat’s narrative science technology and financial data to provide readers with the fastest and most accurate reports. This story was reviewed by MarketBeat’s editorial team prior to publication. Please send questions or comments about this story to [email protected]
Should you invest $1,000 in Warner Music Group right now?
Before you consider Warner Music Group, you’ll want to hear this.
MarketBeat tracks daily the highest rated and most successful research analysts on Wall Street and the stocks they recommend to their clients. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the market takes off…and Warner Music Group wasn’t on the list.
While Warner Music Group currently has a “Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
See the 5 actions here