Earnings Preview: Warner Bros. Discovery
Warner Bros. Discovery (NASDAQ:WBD) is set to give its latest quarterly earnings report on Thursday, 2025-08-07. Here's what investors need to know before the announcement.
Analysts estimate that Warner Bros. Discovery will report an earnings per share (EPS) of $-0.19.
The market awaits Warner Bros. Discovery's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Earnings History Snapshot
Last quarter the company missed EPS by $0.05, which was followed by a 0.67% increase in the share price the next day.
Here's a look at Warner Bros. Discovery's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | -0.13 | 0.01 | -0.09 | -0.22 |
| EPS Actual | -0.18 | -0.20 | 0.05 | -0.24 |
| Price Change % | 1.0% | 4.0% | -2.0% | -9.0% |
Warner Bros. Discovery Share Price Analysis
Shares of Warner Bros. Discovery were trading at $12.72 as of August 05. Over the last 52-week period, shares are up 83.26%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Opinions on Warner Bros. Discovery
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Warner Bros. Discovery.
Analysts have provided Warner Bros. Discovery with 12 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $13.92, suggesting a potential 9.43% upside.
Comparing Ratings with Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Live Nation Entertainment, Liberty Media and Warner Music Gr, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Live Nation Entertainment, with an average 1-year price target of $167.67, suggesting a potential 1218.16% upside.
- Analysts currently favor an Buy trajectory for Liberty Media, with an average 1-year price target of $106.0, suggesting a potential 733.33% upside.
- Analysts currently favor an Neutral trajectory for Warner Music Gr, with an average 1-year price target of $32.36, suggesting a potential 154.4% upside.
Overview of Peer Analysis
In the peer analysis summary, key metrics for Live Nation Entertainment, Liberty Media and Warner Music Gr are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Warner Bros. Discovery | Neutral | -9.83% | $3.85B | -1.33% |
| Live Nation Entertainment | Outperform | -10.99% | $1.13B | -53.64% |
| Liberty Media | Buy | -23.85% | $122M | 0.07% |
| Warner Music Gr | Neutral | -0.67% | $693M | 6.47% |
Key Takeaway:
Warner Bros. Discovery is positioned in the middle among its peers for consensus rating. It ranks at the bottom for revenue growth. In terms of gross profit, it is at the top. For return on equity, it is positioned in the middle.
Unveiling the Story Behind Warner Bros. Discovery
Warner Bros. Discovery was formed in 2022 through the combination of WarnerMedia and Discovery Communications. It operates in three global business segments: studios, networks, and direct-to-consumer. Warner Bros. Pictures is the crown jewel of the studios business, producing, distributing, and licensing movies and television shows. The networks business consists of basic cable networks, such as CNN, TNT, TBS, Discovery, HGTV, and the Food Network. Direct-to-consumer includes HBO and the firm's streaming platforms, which have now been consolidated to Max and Discovery+. Much of the DTC content is created within the firm's other two business segments. Each segment operates with a global reach, with Max available in over 70 countries.
Unraveling the Financial Story of Warner Bros. Discovery
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Negative Revenue Trend: Examining Warner Bros. Discovery's financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -9.83% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.
Net Margin: Warner Bros. Discovery's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -5.05%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): Warner Bros. Discovery's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -1.33%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Warner Bros. Discovery's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.44%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Warner Bros. Discovery's debt-to-equity ratio is below the industry average at 1.11, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Warner Bros. Discovery visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
