Warner Music Group Corp Ordinary Shares - Class A
WMG: XNAS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $35.00 | Thrcqx | Nkjfscvcc |
Warner Music Earnings: Top and Bottom Line Benefit From Return to Growth for Streaming
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Warner Music reported better-than-expected fiscal third-quarter results as revenue and adjusted EBITDA both beat FactSet consensus. Share traded up over 7% as recorded music streaming revenue returned to growth after four straight quarters of decline. Warner benefited from not only a stronger release slate but also growth in ad-supported streaming. Like Universal, we think Warner is well-positioned to benefit from increased streaming usage and price increases at subscription services. We are maintaining our $36 fair value estimate.