Overview

• US independent music company's Q4 revenue rose 15% yr/yr, led by recorded music

• Q4 adjusted EPS rose to $0.07 from $0.04 a year ago

• Company forecasts fiscal 2027 revenue and adjusted EBITDA to grow mid-single digits

Outlook

• Reservoir Media sees FY27 revenue between $186 mln and $191 mln

• Company expects FY27 adjusted EBITDA between $75 mln and $79 mln

• Reservoir Media says robust deal pipeline supports continued catalog expansion in FY27

Result Drivers

• PUBLISHING GROWTH - Q4 publishing revenue rose on higher digital and synchronization revenue, partially offset by lower performance revenue

• RECORDED MUSIC GAINS - Q4 recorded music revenue rose on double-digit growth in digital and synchronization revenues

• CATALOG ACQUISITIONS - Recent catalog acquisitions and international expansion contributed to revenue growth

Company press release: ID:nACSqMWdNa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the entertainment production peer group is "buy"

• Wall Street's median 12-month price target for Reservoir Media Inc is $13.00, about 25% above its May 27 closing price of $10.40

• The stock recently traded at 95 times the next 12-month earnings vs. a P/E of 68 three months ago

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