Based in New York, Warner Bros. Discovery, Inc. (WBD) is a global leader in media and entertainment, delivering compelling content across television, film, and streaming platforms. With a market cap of $18.18 billion, WBD is renowned for its extensive portfolio that enhances storytelling, viewer engagement, and digital media innovation. The company is set to announce its fiscal Q2 earnings results after the market closes on Thursday, Aug. 1.
Ahead of the event, analysts expect WBD to report a loss of $0.16 per share, 68.6% narrower compared to the loss of $0.51 per share in the same quarter last year. The company has consistently missed Wall Street’s EPS estimates in its last four quarterly reports.
WBD's adjusted loss of $0.40 per share for the last reported quarter missed the consensus estimate by 66.7%. The company's quarterly performance was primarily impacted by a significant decline in advertising and studio revenues, coupled with lower-than-expected contributions from its networks and content segments.
For fiscal 2024, analysts expect WBD to report a loss per share of $0.38, narrower by 70.3% from the $1.28 per share loss in fiscal 2023.
WBD stock is down 34.8% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 18.1% gains and the Dynamic Leisure And Entertainment Invesco ETF's (PEJ) 9.4% returns over the same time frame.
On Apr. 30, shares of WBD plunged 9% due to TNT losing NBA rights to Comcast (CMCSA) and weak earnings from Paramount Global (PARA), affecting merger progress with Skydance. However, on May 9, WBD shares rose 3.1% following Q1 earnings.
The consensus opinion on WBD stock is optimistic, with an overall “Moderate Buy” rating. Out of 26 analysts covering the stock, 12 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, 11 recommend a “Hold,” and two recommend “Strong Sell.”
This configuration is slightly more bullish than three months ago when the stock had 11 “Strong Buy” ratings. WBD's average analyst price target is $11.93, indicating a potential upside of 60.8% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
