Preview: Warner Music Gr's Earnings

Warner Music Gr (NASDAQ:WMG) is preparing to release its quarterly earnings on Thursday, 2025-11-20. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Warner Music Gr to report an earnings per share (EPS) of $0.34.

Anticipation surrounds Warner Music Gr's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings History Snapshot

In the previous earnings release, the company missed EPS by $0.31, leading to a 1.8% increase in the share price the following trading session.

Here's a look at Warner Music Gr's past performance and the resulting price change:

Performance of Warner Music Gr Shares

Shares of Warner Music Gr were trading at $29.81 as of November 17. Over the last 52-week period, shares are down 3.78%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analyst Insights on Warner Music Gr

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Warner Music Gr.

Analysts have given Warner Music Gr a total of 6 ratings, with the consensus rating being Outperform. The average one-year price target is $39.83, indicating a potential 32.77% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of TKO Group Holdings, Roku and Cinemark Holdings, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for TKO Group Holdings, with an average 1-year price target of $227.36, suggesting a potential 657.87% upside.
• Analysts currently favor an Outperform trajectory for Roku, with an average 1-year price target of $116.67, suggesting a potential 288.9% upside.
• Analysts currently favor an Outperform trajectory for Cinemark Holdings, with an average 1-year price target of $36.25, suggesting a potential 20.83% upside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for TKO Group Holdings, Roku and Cinemark Holdings, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Warner Music Gr ranks at the top for Revenue Growth and Gross Profit, while it ranks at the bottom for Return on Equity among its peers.

Discovering Warner Music Gr: A Closer Look

Warner Music is the third-largest of the three major record companies. Recorded music accounts for most of the firm's revenue, with the segment housing notable record labels including Atlantic Records, Warner Records, Elektra Records. Some of the most successful current artists signed to record deals with Warner include Ed Sheeran, Bruno Mars, Cardi B, and Dua Lipa. Warner's remaining revenue comes from its publishing business, where Warner Chappell represents more than 180,000 songwriters and composers, some of whom are also Warner recording artists but many of whom are not recording artists or are attached to other labels. Warner Chappell controls more than 1 million musical compositions. Access Industries controls 98% of Warner's voting rights, while holding a 72% economic interest.

Warner Music Gr's Economic Impact: An Analysis

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Warner Music Gr's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 8.69%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: Warner Music Gr's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -0.95%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Warner Music Gr's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -2.77%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Warner Music Gr's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.17%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Warner Music Gr's debt-to-equity ratio is notably higher than the industry average. With a ratio of 7.84, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Warner Music Gr visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.