Shares of Tencent Music Entertainment (NYSE: TME) surged more than 30% after it reported earnings for its third quarter of Fiscal Year 2022. Adjusted earnings per share came in at $0.12, which beat analysts’ consensus estimate of $0.09 per share.
Sales decreased by 14% year-over-year, with revenue hitting $1.04 billion. Nevertheless, this beat analysts’ target by more than $49 million.
In addition, the number of music subscribers increased to 85.3 million, equating to a gain of 20% on a year-over-year basis.
Is TME Stock a Buy?
TME stock has a Hold consensus rating based on one Buy, five Holds, and one Sell assigned in the past three months. The average TME stock price target of $5.13 implies almost 12% downside potential.