What to anticipate from Warner Bros. Discovery Q3 Earnings

Warner Bros. Discovery (NASDAQ:WBD) is scheduled to announce Q3 earnings outcomes on Thursday, November third, after market shut.

The consensus EPS Estimate is -$0.05 (-120.8% Y/Y) and the consensus Income Estimate is $10.33B (+227.9% Y/Y).

The corporate is anticipating to guide a pre-tax cost of $1.3B to $1.6B within the quarter for restructuring its companies.

Greater than 50% of the corporate’s revenues comes from promoting and Q3 is anticipated to have witnessed a gentle ad-spending surroundings.

Warner Bros. Discovery chief monetary officer Gunnar Wiedenfels has instructed the corporate’s streaming companies are “​​basically underpriced.” Wiedenfels made the feedback throughout an look on the Goldman Sachs Communacopia + Tech Convention in September, the place he mentioned Warner Bros.’ plans to merge HBO Max and Discovery+ right into a single platform subsequent yr.

Earnings Historical past:

In Q2, the corporate noticed high line development of greater than 200% Y/Y and ended the quarter with 92.1M international DTC subscribers in contrast with 90.4M subscribers in Q1.

During the last 2 years, WBD has overwhelmed EPS estimates 88% of the time and has overwhelmed income estimates 88% of the time.

During the last 3 months, EPS estimates have seen 3 upward revisions and 9 downward. Income estimates have seen 3 upward revisions and 12 downward.

Analysts Scores:

KeyBanc analyst Brandon Nispel on Oct 26 lowered his estimates on the media sector, rebuilding his mannequin within the face of the group’s heavy challenges – notably the macroeconomic downturn and growing competitors for advertisements in a tricky surroundings. Nispel mentioned “the WarnerMedia belongings want fixing, which doubtless results in unfavorable underlying development” Nispel added that Warner Bros. Discovery (WBD) is unlikely to outperform amid a big pay TV enterprise and the shortage, for now, of a mixed HBO Max/Discovery+ streaming service.

Barclays lowered their worth goal on WBD from $17 to $15 on October 11.

Credit score Suisse Group lowered their worth goal from $39 to $36 and set an “outperform” score for the corporate.

10 out of 25 Wall Avenue Analysts have a Sturdy Purchase score on the inventory, 3 says to Purchase and 11 Maintain score.

SA Quant score system screens the inventory with a Maintain score.

On Apr 8, Discovery and AT&T’s Warner Media unit accomplished the merger to kind a mixed firm, Warner Bros. Discovery.

A fast have a look at the corporate’s efficiency vs. broader market index and friends: