Why Is Warner Music Stock Trading Higher On Wednesday?

Warner Music Group Corp WMG stock traded higher on Wednesday after the company reported fiscal third-quarter 2024 results.

GAAP EPS of $0.27 was in line with the analyst consensus estimate. 

Revenue declined 0.6% year-on-year to $1.55 billion, marginally missing the analyst consensus estimate of $1.56 billion.

Recorded Music revenue declined by 2.4% Y/Y at $1.25 billion in the quarter.

Music Publishing revenue increased by 7.8% year over year to $305 million, and Digital revenue increased by 5% year over year to $1.08 billion.

Adjusted OIBDA increased by 6.4% compared to the previous year, reaching $316 million, and the margin improved by 130 basis points to 20.3%

Warner Music held $607 million in cash and equivalents as of June 30, 2024. Operating cash flow generated was $188 million, compared to $146 million in the prior-year quarter.

“Our strong subscription streaming growth in Q3 was driven by the performance of our music and healthy industry trends,” said Robert Kyncl, CEO of Warner Music Group.

Warner Music Stock Prediction For 2024

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Warner Music have an average 1-year price target of $33.5, representing an expected upside of 13.79%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. 1 analyst has bearish recommendations on Warner Music Gr, while 2 analysts have bullish ratings. The street high price target from Morgan Stanley is $41.0, while the street low from Redburn Atlantic is $23.0.

Price Action: WMG stock was up 4.06% to $29.25 at the last check on Wednesday.

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