Warner Bros. Discovery, Inc. (NASDAQ:WBD) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts maintain a “Hold” consensus on Warner Bros. Discovery, with 12 holds, six buys, three sells and one strong buy among 22 analysts. The average 12-month price target is approximately $27.69.
• WBD’s second-quarter adjusted EPS of $0.06 surpassed expectations for a loss of roughly $0.13–$0.14, while streaming revenue increased 10%. However, total revenue declined 11.2% year over year to $8.72 billion, below the $9.25 billion consensus estimate.
• The proposed Paramount-WBD merger gained support from U.K. regulators, but it still faces a lawsuit from 12 U.S. state attorneys general, leaving significant uncertainty around the transaction.

Warner Bros. Discovery, Inc. (NASDAQ:WBD - Get Free Report) has been assigned an average rating of "Hold" from the twenty-two analysts that are covering the company, Marketbeat reports. Three research analysts have rated the stock with a sell rating, twelve have issued a hold rating, six have given a buy rating and one has given a strong buy rating to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $27.6912.

Several equities research analysts recently issued reports on WBD shares. Guggenheim reissued a "neutral" rating on shares of Warner Bros. Discovery in a research report on Thursday, May 7th. UBS Group upped their price target on shares of Warner Bros. Discovery from $30.00 to $31.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Huber Research raised shares of Warner Bros. Discovery from an "underweight" rating to an "overweight" rating in a research note on Monday, June 1st. Zacks Research lowered shares of Warner Bros. Discovery from a "hold" rating to a "strong sell" rating in a report on Monday, July 27th. Finally, KeyCorp reissued an "overweight" rating on shares of Warner Bros. Discovery in a research note on Friday, April 24th.

Warner Bros. Discovery Stock Performance

NASDAQ WBD opened at $26.78 on Friday. The business's 50-day moving average price is $26.49 and its 200 day moving average price is $27.20. The company has a current ratio of 0.78, a quick ratio of 0.73 and a debt-to-equity ratio of 0.90. Warner Bros. Discovery has a twelve month low of $10.76 and a twelve month high of $30.00. The company has a market capitalization of $67.14 billion, a PE ratio of -21.09 and a beta of 1.55.

Warner Bros. Discovery (NASDAQ:WBD - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.06 EPS for the quarter, beating the consensus estimate of ($0.14) by $0.20. Warner Bros. Discovery had a negative return on equity of 8.91% and a negative net margin of 8.77%.The company had revenue of $8.72 billion during the quarter, compared to analysts' expectations of $9.25 billion. During the same quarter in the previous year, the business earned $0.63 EPS. The firm's revenue was down 11.2% on a year-over-year basis. On average, research analysts predict that Warner Bros. Discovery will post -1.08 earnings per share for the current year.

Key Headlines Impacting Warner Bros. Discovery

Here are the key news stories impacting Warner Bros. Discovery this week:

• Positive Sentiment: The U.K. Competition and Markets Authority approved Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, removing a significant regulatory hurdle and improving the deal’s prospects. However, the transaction still faces a lawsuit from 12 U.S. state attorneys general. Paramount-Warner Bros. Discovery merger gets boost after UK approval
• Positive Sentiment: WBD reported second-quarter adjusted earnings of $0.06 per share, well above analysts’ consensus estimate for a loss of roughly $0.13 to $0.14 per share. Warner Bros. Discovery Q2 Earnings Surpass Estimates
• Positive Sentiment: Streaming revenue rose 10%, led by HBO Max, highlighting continued growth in the company’s direct-to-consumer business ahead of the proposed Paramount combination. Warner Bros. Discovery reports 10% jump in streaming revenue
• Neutral Sentiment: Lionsgate CEO Jon Feltheimer endorsed the Paramount-WBD merger, saying prolonged uncertainty is harmful to the entertainment industry. The comments offer industry support but do not resolve the transaction’s legal obstacles. Paramount-WBD Deal Endorsed By Lionsgate CEO
• Negative Sentiment: Second-quarter revenue fell 11.2% year over year to $8.72 billion, below the approximately $9.25 billion consensus estimate. Soft advertising, weaker box-office results and the absence of NBA programming weighed on results. Warner Bros Discovery revenue disappoints
• Negative Sentiment: The Paramount deal remains vulnerable to U.S. antitrust litigation, while merger uncertainty is complicating strategic planning and creating challenges for employees. Paramount’s Warner Concessions Give Credibility to U.S. Lawsuit

Institutional Investors Weigh In On Warner Bros. Discovery

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Venturi Wealth Management LLC lifted its stake in shares of Warner Bros. Discovery by 4.5% in the 1st quarter. Venturi Wealth Management LLC now owns 8,462 shares of the company's stock valued at $232,000 after purchasing an additional 367 shares in the last quarter. Krilogy Financial LLC increased its position in Warner Bros. Discovery by 2.6% during the 1st quarter. Krilogy Financial LLC now owns 14,809 shares of the company's stock worth $406,000 after purchasing an additional 369 shares in the last quarter. Cromwell Holdings LLC raised its holdings in Warner Bros. Discovery by 7.6% in the second quarter. Cromwell Holdings LLC now owns 5,467 shares of the company's stock valued at $146,000 after buying an additional 386 shares during the period. Elevation Wealth Partners LLC raised its holdings in Warner Bros. Discovery by 64.3% in the second quarter. Elevation Wealth Partners LLC now owns 1,009 shares of the company's stock valued at $27,000 after buying an additional 395 shares during the period. Finally, Optas LLC lifted its holdings in shares of Warner Bros. Discovery by 2.7% during the 1st quarter. Optas LLC now owns 15,529 shares of the company's stock valued at $426,000 after acquiring an additional 409 shares in the last quarter. 59.95% of the stock is currently owned by institutional investors and hedge funds.

Warner Bros. Discovery Company Profile

Warner Bros. Discovery NASDAQ: WBD is a global media and entertainment company formed when WarnerMedia and Discovery, Inc combined their businesses in 2022. Headquartered in New York City, the company assembles a broad portfolio of film and television production, linear and cable networks, streaming services and consumer distribution operations. Its assets span well-known studio brands, premium scripted and unscripted programming, news and factual entertainment, and licensed franchise properties.

The company's core activities include film and television production and distribution through units such as Warner Bros.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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