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 $19.2 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 Q3 earnings results after the market closes on Thursday, Nov. 7.
Ahead of the event, analysts expect WBD to report a loss of $0.05 per share, 70.6% narrower compared to the loss of $0.17 per share in the same quarter last year. The company has consistently missed Wall Street’s EPS estimates in all of its last four quarterly reports.
For fiscal 2024, analysts expect WBD to report a loss per share of $4.50, up 251.6% from the $1.28 per share loss in fiscal 2023.
WBD stock is down 31.3% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 23% gains and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 25.6% gains over the same time frame.
On Sep. 12, the stock rose 10.4% following the announcement of a multi-year distribution partnership with Charter Communications. This agreement aims to combine traditional linear video with direct-to-consumer (DTC) streaming services, enhancing value for customers.
However, shares of WBD dropped nearly 9% after the company announced its Q2 earnings result. The company fell short of its EPS and revenue forecasts due to declines across all business segments, compounded by difficulties in U.S. linear advertising and sports rights renewals.
The consensus opinion on WBD stock is cautiously optimistic, with an overall “Moderate Buy” rating. Out of 26 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, 13 recommend a “Hold,” and two recommend “Strong Sell.” This configuration is slightly less bullish than three months ago when the stock had 12 “Strong Buy” ratings.
WBD's average analyst price target is $10.06, indicating a potential upside of 28.6% from the current levels.
On the date of publication, Kritika Sarmah 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.
