Tencent Music Entertainment Group(TME) share price rose over 35%
Tencent Music Entertainment Group's (symbol ‘TME’) share price rose by more than 35% performing extraordinary in the last quarter of the year. The company’s earnings report for the fiscal quarter ending December 2023 is expected to be released on Tuesday, March 19th, before the market opens. The consensus EPS is $0.13, up from $0.12 in the same quarter last year.
The enviable performance of the company in the fourth quarter of 2023 is also reflected in the latest published financial statements. As of 30/09/2023, the company had a current ratio of more than 245% showing that any short-term financial difficulties could be easily handled with the current assets at hand. Also in the last seven quarters the company had declining revenues but the net profit in these same quarters kept rising. This shows that the company managed to lower its costs, especially the operating costs, and therefore increased its net profits substantially. These lower costs have also a direct relation to the decline in long-term debt which means less interest payables.
Technical analysis shows the price has reacted on the resistance of the upper band of the Bollinger bands and is currently correcting to the downside at the time of this report being written. The Stochastic oscillator is not recording any overbought or oversold levels while the 50-day moving average is trading well above the 100-day moving average validating the overall bullish momentum in the market. Today’s session has already covered the price gap created recently while the $10 price area is the first area of possible support which is the psychological support area of the round number as well as the recent price reaction of last week.
The enviable performance of the company in the fourth quarter of 2023 is also reflected in the latest published financial statements. As of 30/09/2023, the company had a current ratio of more than 245% showing that any short-term financial difficulties could be easily handled with the current assets at hand. Also in the last seven quarters the company had declining revenues but the net profit in these same quarters kept rising. This shows that the company managed to lower its costs, especially the operating costs, and therefore increased its net profits substantially. These lower costs have also a direct relation to the decline in long-term debt which means less interest payables.
Technical analysis shows the price has reacted on the resistance of the upper band of the Bollinger bands and is currently correcting to the downside at the time of this report being written. The Stochastic oscillator is not recording any overbought or oversold levels while the 50-day moving average is trading well above the 100-day moving average validating the overall bullish momentum in the market. Today’s session has already covered the price gap created recently while the $10 price area is the first area of possible support which is the psychological support area of the round number as well as the recent price reaction of last week.