Warner Music shares down after fourth-quarter earnings miss expectations
The company posted a profit of $1 million for the three months ended September 30, as compared to $91 million in the same period last year.
avatar
Staff or Guest writer for The Dog of Wall Street.
2020-11-23 11:06

Warner Music Group Corp. (NASDAQ: WMG) shares fell more than 4 percent this morning after the New York-based entertainment and record label conglomerate reported its fourth-quarter earnings below the consensus forecast.

Warner Music shares down after fourth-quarter earnings miss expectations

The company posted a profit of $1 million, or $0 per share for the three months ended September 30, as compared to $91 million, or 18 cents per share in the same period of 2019, and below analysts’ average estimate of 5 cents. On an adjusted basis, earnings decreased to $20 million, versus $125 million in the year-ago quarter.

Revenue rose to $1.13 billion in the quarter, up just 0.2 percent from last year, as strong digital revenue could not make up for the weak performance by its music publishing business and recorded music artist services.

Speaking on the results, CEO at Warner Music, Steve Cooper said “we are proud of everything we’ve accomplished in the past year, despite the challenging conditions that the world has faced. We’re essentially flat against a record-breaking prior year and, during the quarter, we grew 11% on an as-reported basis, excluding the revenue streams most impacted by COVID.”

The company said it had cash of $176 million from operating activities in the quarter, as compared to $156 million in the same period, a year earlier. As of September 30, the company’s cash balance stood at $553 million, while it had a total debt of $3.104 billion.

Warner Music (WMG) stock has been on a roller coaster ride since going public this year. Its share price touched a high of around $33 in June. However, its share price has mostly stayed flat or declined in recent months. Overall. WMG stock value has decreased by more than 7 percent on a year-to-date basis, including today’s drop.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2020-11-23 11:06

avatar
About the Author
Staff or Guest writer for The Dog of Wall Street.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Levi Strauss' Bold Gambit: Is the Denim Icon's DTC Shift Enough to Weather the Storm?
Levi Strauss & Co. boasts a strong quarter with direct-to-consumer growth and innovative fashion, but can it navigate the choppy waters of the retail market?
By Alfonso | 9 months ago

Amazon's Bold Counterattack: Introducing the China-Direct Discount Section
As competition heats up, Amazon unveils a daring new strategy to offer unbeatable prices and direct shipping from China.
By Alfonso | 9 months ago

Tesla's Legal Challenges: Facing the Music on Autopilot Misrepresentation
Court ruling intensifies scrutiny on Tesla's self-driving claims.
By Alfonso | 10 months ago

Netflix's Ad-Supported Triumph: A New Era in Streaming
Surpassing 40 million users, Netflix’s ad-supported plan redefines the streaming landscape.
By Alfonso | 10 months ago

Tesla Stock (TSLA): Look Who's Back!
I’m cautiously optimistic but I’m at the point where I need to see it to believe it.
By Mike Sakuraba | 11 months ago

2 Earnings To Pay Attention to Next Week
Since big tech is the theme, you probably know what I have my eyes on for next week.
By Mike Sakuraba | 11 months ago

2 Stocks to Watch Below $10
Here are two stocks that are currently less trading in the single digits that I believe have some relative upside from their current prices.
By Mike Sakuraba | 11 months ago

Looking Ahead to Tesla's Earnings: What Can We Expect?
Is there any stock that has been more talked about than Tesla (NASDAQ: TSLA) as of late? It’s a company that is always in the spotlight but the stock is under some heavy scrutiny this year and deservedly so.
By Mike Sakuraba | 11 months ago