Analysts Estimate Warner Music Group Corp. (WMG) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - The upcoming earnings report for Warner Music Group Corp. is anticipated to show a year-over-year decline in earnings despite an increase in revenues, with the actual results being crucial for stock price movement [5][6]. Earnings Expectations - Warner Music Group is expected to report quarterly earnings of $0.25 per share, reflecting a year-over-year decline of 10.7% [2]. - Revenues are projected to be $1.58 billion, which is a 1.3% increase from the same quarter last year [7]. Estimate Revisions - The consensus EPS estimate has been revised 2.11% higher in the last 30 days, indicating a collective reassessment by analysts [8]. - The Most Accurate Estimate for Warner Music Group is lower than the Zacks Consensus Estimate, suggesting a bearish outlook from analysts [13]. Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model indicates a negative Earnings ESP of -4.38%, which suggests a lower likelihood of an earnings beat [20]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [11]. Historical Performance - Over the last four quarters, Warner Music Group has beaten consensus EPS estimates three times, indicating some potential for positive surprises [22]. Investment Considerations - Despite the historical performance, the current combination of a negative Earnings ESP and a Zacks Rank of 2 makes it challenging to predict a definitive earnings beat for Warner Music Group [14][17].