Why Warner Music Group Shares Are Seeing Blue Skies

Warner Music Group Corp WMG shares are trading higher by 14.9% to $31.01 Tuesday morning after the company reported better-than-expected fourth-quarter sales results.

What Happened?

Warner Music Group reported fourth-quarter sales of $1.50 billion, which beat the analyst consensus estimate of $1.42 billion.

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Warner Music Group added that digital revenue grew 7% or 12% in constant currency for the 3 months ended September 30. The company says total revenue grew 9% or 16% in constant currency for the 3 months ended September 30.

Eric Levin, CFO, Warner Music Group, said, "We've delivered double-digit revenue growth on a constant currency basis and robust cash flow, driven by excellent operating performance across the company. The momentum in our business is strong, underpinned by global subscriber growth, subscription price increases, and the expansion of emerging platforms."

"As we look ahead, we're excited to share amazing releases from the world's hottest artists, as well as innovative tech collaborations that will strengthen our position at the intersection of music, film, TV, social media, fitness, and gaming," Levin stated.

According to data from Benzinga Pro, WMG has a 52-week high of $44.64 and a 52-week low of $21.57.