Global entertainment and media company Warner Bros. Discovery (NASDAQ:WBD) will be announcing earnings results tomorrow before market open. Here’s what to look for.
Warner Bros. Discovery missed analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $9.62 billion, down 3.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Warner Bros. Discovery a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Warner Bros. Discovery’s revenue to be flat year on year at $10.22 billion, improving from the 6.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Warner Bros. Discovery’s peers in the media segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Disney delivered year-on-year revenue growth of 4.8%, meeting analysts’ expectations, and News Corp reported a revenue decline of 13.5%, topping estimates by 3.1%. Disney traded down 1% following the results while News Corp was also down 1.2%.
Read our full analysis of Disney’s results here and News Corp’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the media stocks have shown solid performance, the group has generally underperformed, with share prices down 3.4% on average over the last month. Warner Bros. Discovery is up 4% during the same time and is heading into earnings with an average analyst price target of $12.98 (compared to the current share price of $10.66).
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