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What Awaits Warner Bros. Discovery (WBD) in Q4 Earnings?
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Warner Bros. Discovery (WBD - Free Report) is set to report fourth-quarter 2022 results on Feb 23.
For the quarter, the Zacks Consensus Estimate for loss is pegged at 3 cents per share, wider than the estimated loss of 2 cents per share in the past 30 days. The figure indicates a 121.4% plunge from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $11.03 billion, implying a 245.9% surge from the year-ago quarter’s reported figure.
On Apr 8, 2022, Discovery and AT&T's Warner Media unit completed the previously announced merger to form a combined company, Warner Bros. Discovery.
Let’s see how things have shaped up for this announcement.
Warner Bros. Discovery, Inc. Price and EPS Surprise
Warner Bros. Discovery’s fourth-quarter 2022 performance is expected to have witnessed a steady ad-spending environment. The company generates more than 50% of its revenues from advertising.
In the third quarter, Advertising revenues increased 40.5% year over year to $2.04 billion. This trend is likely to have continued in the to-be-reported quarter.
The company boasts a strong non-fiction content portfolio. The increasing availability of its content across linear, digital over-the-top platforms like Hulu and Sling TV, is expected to have improved traffic in the to-be-reported quarter. Steady demand for unscripted content is likely to have contributed to Dplay’s performance.
Steady viewership of multiple channels, including Discovery Channel, Animal Planet, Food Network, HGTV, MotorTrend, Science, TLC, ID, Oprah, Eurosport, the Cooking Channel and UKTV Lifestyle are expected to have aided top-line growth in the to-be-reported quarter.
Warner Bros. Discovery ended the third quarter of 2022 with 94.9 million global DTC subscribers compared with 92.1 million subscribers in the previous quarter. The trend is expected to have continued in the to-be-reported quarter.
Discovery+ is off to an impressive start. Discovery+ became a sister service to AT&T's WarnerMedia's HBO Max in April 2022, following the merger with Discovery into Warner Bros.
The availability of Discovery+ on LG Smart TVs in Canada, including LG’s line-up of award-winning LG OLED TVs and LG QNED MiniLED TVs, is expected to have aided the top line in the to-be-reported quarter.
International revenues are likely to have been boosted by an improvement in the ad-spending environment, particularly in the UK, Italy, Germany and Poland.
However, incremental spending on direct-to-consumer initiatives (marketing and content costs) is expected to have hurt profitability in the fourth quarter.
Warner Bros. Discovery has been finding itself in a thick soup lately. Along with losses that it is facing on its high-budget movies, the company is in high debt ever since the merger of Warner Media and Discovery. This is expected to have weighed on margins in the to-be-reported quarter.
The long-term debt for third-quarter fiscal 2022 stood at $48.612 billion, a 236.74% increase year over year.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Warner Bros. Discovery has an Earnings ESP of +541.18% and currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Grid Dynamics is scheduled to release its fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for GDYN’s earnings is pegged at 11 cents per share, unchanged over the past 60 days.
Splunk has an Earnings ESP of +0.39% and a Zacks Rank #2 at present.
Splunk is scheduled to release its fiscal fourth-quarter 2023 results on Mar 1. The Zacks Consensus Estimate for SPLK’s earnings has moved north by 0.9% to $1.11 per share in the past 60 days.
Salesforce (CRM - Free Report) has an Earnings ESP of +0.32% and a Zacks Rank #2 at present.
Salesforce is scheduled to release its fiscal fourth-quarter 2023 results on Mar 1. The Zacks Consensus Estimate for CRM’s earnings has been stable at $1.36 per share in the past 60 days.
Image: Bigstock
What Awaits Warner Bros. Discovery (WBD) in Q4 Earnings?
Warner Bros. Discovery (WBD - Free Report) is set to report fourth-quarter 2022 results on Feb 23.
For the quarter, the Zacks Consensus Estimate for loss is pegged at 3 cents per share, wider than the estimated loss of 2 cents per share in the past 30 days. The figure indicates a 121.4% plunge from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $11.03 billion, implying a 245.9% surge from the year-ago quarter’s reported figure.
On Apr 8, 2022, Discovery and AT&T's Warner Media unit completed the previously announced merger to form a combined company, Warner Bros. Discovery.
Let’s see how things have shaped up for this announcement.
Warner Bros. Discovery, Inc. Price and EPS Surprise
Warner Bros. Discovery, Inc. price-eps-surprise | Warner Bros. Discovery, Inc. Quote
Factors to Consider
Warner Bros. Discovery’s fourth-quarter 2022 performance is expected to have witnessed a steady ad-spending environment. The company generates more than 50% of its revenues from advertising.
In the third quarter, Advertising revenues increased 40.5% year over year to $2.04 billion. This trend is likely to have continued in the to-be-reported quarter.
The company boasts a strong non-fiction content portfolio. The increasing availability of its content across linear, digital over-the-top platforms like Hulu and Sling TV, is expected to have improved traffic in the to-be-reported quarter. Steady demand for unscripted content is likely to have contributed to Dplay’s performance.
Steady viewership of multiple channels, including Discovery Channel, Animal Planet, Food Network, HGTV, MotorTrend, Science, TLC, ID, Oprah, Eurosport, the Cooking Channel and UKTV Lifestyle are expected to have aided top-line growth in the to-be-reported quarter.
Warner Bros. Discovery ended the third quarter of 2022 with 94.9 million global DTC subscribers compared with 92.1 million subscribers in the previous quarter. The trend is expected to have continued in the to-be-reported quarter.
Discovery+ is off to an impressive start. Discovery+ became a sister service to AT&T's WarnerMedia's HBO Max in April 2022, following the merger with Discovery into Warner Bros.
The availability of Discovery+ on LG Smart TVs in Canada, including LG’s line-up of award-winning LG OLED TVs and LG QNED MiniLED TVs, is expected to have aided the top line in the to-be-reported quarter.
International revenues are likely to have been boosted by an improvement in the ad-spending environment, particularly in the UK, Italy, Germany and Poland.
However, incremental spending on direct-to-consumer initiatives (marketing and content costs) is expected to have hurt profitability in the fourth quarter.
Warner Bros. Discovery has been finding itself in a thick soup lately. Along with losses that it is facing on its high-budget movies, the company is in high debt ever since the merger of Warner Media and Discovery. This is expected to have weighed on margins in the to-be-reported quarter.
The long-term debt for third-quarter fiscal 2022 stood at $48.612 billion, a 236.74% increase year over year.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Warner Bros. Discovery has an Earnings ESP of +541.18% and currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Grid Dynamics (GDYN - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Grid Dynamics is scheduled to release its fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for GDYN’s earnings is pegged at 11 cents per share, unchanged over the past 60 days.
Splunk has an Earnings ESP of +0.39% and a Zacks Rank #2 at present.
Splunk is scheduled to release its fiscal fourth-quarter 2023 results on Mar 1. The Zacks Consensus Estimate for SPLK’s earnings has moved north by 0.9% to $1.11 per share in the past 60 days.
Salesforce (CRM - Free Report) has an Earnings ESP of +0.32% and a Zacks Rank #2 at present.
Salesforce is scheduled to release its fiscal fourth-quarter 2023 results on Mar 1. The Zacks Consensus Estimate for CRM’s earnings has been stable at $1.36 per share in the past 60 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.