Global entertainment and media company Warner Bros. Discovery (NASDAQ:WBD) will be reporting results tomorrow morning. Here’s what to look for.
Warner Bros. Discovery missed analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $9.71 billion, down 6.2% year on year. It was a disappointing quarter for the company, with a miss of analysts’ operating margin and earnings 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 decline 1.9% year on year to $9.79 billion, a reversal from the 1.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 8 downward revisions over the last 30 days (we track 20 analysts).
Looking at Warner Bros. Discovery’s peers in the media segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Scholastic delivered year-on-year revenue growth of 3.8%, beating analysts’ expectations by 1.6%, and fuboTV reported revenues up 20.3%, topping estimates by 2.5%. Scholastic traded up 6% following the results while fuboTV was down 17%.
Read our full analysis of Scholastic’s results here and fuboTV’s results here.
There has been positive sentiment among investors in the media segment, with share prices up 3.3% on average over the last month. Warner Bros. Discovery is up 6.5% during the same time and is heading into earnings with an average analyst price target of $10.56 (compared to the current share price of $8.22).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
