Warner Music Group Corp. (WMG) saw its stock price tumble 5.25% in pre-market trading on Thursday following the release of its fiscal second-quarter earnings report. The entertainment and record label conglomerate's financial results fell short of analysts' expectations, triggering a sell-off among investors.

The company reported earnings per share of $0.07 for the quarter ended March 31, a significant drop from $0.18 in the same period last year and well below the FactSet analyst consensus estimate of $0.27. This represents a staggering 74.07% miss on earnings expectations. Revenue for the quarter came in at $1.48 billion, slightly down from $1.49 billion a year earlier and missing the analyst forecast of $1.52 billion by 2.31%.

Warner Music Group's net income saw a sharp decline to $36 million, compared to $96 million in the prior-year period. The company attributed part of this bottom-line deterioration to the impact of exchange rates on its euro-denominated debt, resulting in a $34 million loss for the quarter. CEO Robert Kyncl commented that while there was strength in some areas, it was partially obscured by challenging comparisons with last year's results. The decline in total revenue was primarily driven by lower recorded music artist services and expanded rights revenue, although this was partially offset by higher licensing and physical revenue.