WBD Earnings Prediction
The chart below shows how WBD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WBD sees a +5.24% change in stock price 10 days leading up to the earnings, and a -2.32% change 10 days following the report. On the earnings day itself, the stock moves by -2.34%. This data can give you a slight idea of what to expect for the next quarter's release.
WBD Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
9.62B
-3.57%
-0.93%
Gross Margin
29.36%
2.02%
56.92%
Operating Margin
4.92%
-19.74%
-180.52%
Net Margin
1.47%
136.03%
-101.42%
EPS
0.05
129.41%
-101.23%
No Data Available
WBD Earnings Analysis
Warner Bros. Discovery, Inc. Series A Common Stock Corporation (WBD.O) Earnings Conference Call
Positive
Subscriber Base Expansion: 1. Subscriber Growth: Warner Bros. Discovery added 7.2 million subscribers in Q3 2024, bringing the total to over 110 million subscribers globally, demonstrating strong momentum in their Direct-To-Consumer segment.
Direct-To-Consumer Revenue Surge: 2. Revenue Increase: Direct-To-Consumer revenue reached $2.6 billion, marking a 9% year-over-year increase, while EBITDA surged to $290 million, up more than 175% year-over-year.
Debt Paydown Success: 3. Debt Reduction: The company has successfully paid down over $16 billion in debt, showcasing a strong commitment to improving its financial position and cash flow.
Global Market Expansion: 4. International Expansion: Max has launched in 65 markets within nine months, with plans for further expansion in Southeast Asia and Australia, indicating a robust growth strategy.
TV Studio Profitability: 5. Strong TV Studio Performance: Warner Bros. TV is on track for its most profitable year in scripted content in the last five years, producing over 80 series across various platforms.
Negative
Advertising Revenue Decline: 1. Declining Advertising Revenue: Total company advertising revenue decreased by 7% year-over-year, with Network advertising down 13% excluding foreign exchange effects, indicating a significant drop in ad sales.
Studio Performance Decline: 2. Subpar Studio Performance: Studio performance in Q3 was below internal expectations, with a notable decline attributed to over $300 million in impairments related to underperforming game releases, particularly 'Multiverses'.
Free Cash Flow Drop: 3. Free Cash Flow Decline: Free cash flow fell by nearly $1.4 billion year-over-year to approximately $630 million, primarily due to increased net cash content spending and unfavorable working dynamics related to the Olympics.
Rising Net Leverage: 4. Increased Net Leverage: Net leverage rose to 4.2 times, a slight sequential increase, indicating a growing debt burden that may hinder financial flexibility moving forward.
Games Segment Challenges: 5. Underperformance in Games Segment: The games business continues to underperform, with over $100 million in impairments this quarter alone, bringing total write-downs for the year to over $300 million, highlighting ongoing challenges in this area.
WBD FAQs
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WBD Earning Call Sentiment
Warner Bros. Discovery, Inc. (WBD) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WBD.O
4.76%Positive
The earnings call summary indicates strong subscriber growth, positive EBITDA, and successful debt reduction efforts, with a focus on global expansion and bundling initiatives. Despite some negative trends in free cash flow and network advertising revenue, the optimistic guidance on EBITDA and advertising revenue growth, along with strategic debt management, supports a positive outlook. The Q&A session provided further insight into management's strategic focus and confidence in future growth, reinforcing a positive sentiment. Overall, the positive elements outweigh the negatives, suggesting a positive stock price movement in the next two weeks.
