Investing.com — Warner Music Group Corp. reported fourth-quarter earnings that missed analyst expectations, sending shares down 5% in early trading.
The music entertainment company posted adjusted earnings per share of $0.08, falling well short of the $0.28 consensus estimate. Revenue came in at $1.63 billion, edging past expectations of $1.59 billion.
Total (EPA:TTEF) revenue increased 2.8% YoY, or 2.9% in constant currency. Recorded Music revenue rose 3.6% to $1.34 billion, while Music Publishing revenue dipped 1% to $295 million.
Digital revenue was essentially flat compared to the prior year quarter, while streaming revenue inched up 1%. Excluding certain one-time items, total revenue would have increased 5.8%.
"Our performance this quarter and this year demonstrated our strength and adaptability in a thriving, fast-moving market," said CEO Robert Kyncl.
Operating income declined to $143 million from $212 million in the year-ago period, impacted by $82 million in restructuring charges related to the company's strategic restructuring plan announced in February.
The 5% stock drop suggests investors were disappointed by the earnings miss, despite the slight revenue beat.
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