WBD Gears Up to Report Q2 Earnings: What's Ahead for the Stock?

Warner Bros. Discovery WBD is scheduled to report its second-quarter 2025 results on Aug. 7.

The Zacks Consensus Estimate for WBD’s second-quarter 2025 revenues is currently pegged at $9.83 billion, indicating a 1.20% increase from the year-ago quarter’s reported figure.

The consensus mark for loss is pinned at 14 cents per share, which has narrowed by a penny over the past 30 days. The figure suggests a 96.56% increase from the year-ago reported figure.

WBD surpassed the Zacks Consensus Estimate for earnings in one of the trailing four quarters and missed three times, with a negative average surprise of 659.92%.

Warner Bros. Discovery, Inc. Price and EPS Surprise

Warner Bros. Discovery, Inc. price-eps-surprise | Warner Bros. Discovery, Inc. Quote

Let us see how things are shaping up for the upcoming announcement.

Key Factors to Note Ahead of WBD’s Q2 Results

Warner Bros. Discovery is expected to have maintained strong performance in the second quarter of 2025, led by continued momentum in its streaming segment. Building on first-quarter subscriber growth of 5.3 million and an 8% increase in streaming revenues, the company likely benefited in the second quarter from the release of hit series such as The Last of Us and And Just Like That. These content drivers, combined with international expansion and growth in ad-supported offerings, likely reinforced WBD’s position as a leading player in the streaming space.

Following a soft first quarter, Warner Bros. Discovery’s Studios segment is expected to have rebounded in the second quarter of 2025, driven by a major licensing agreement with its Streaming division and strong early success from a Minecraft Movie and Sinners. The late-July release of Superman is likely to have further strengthened the segment’s performance.

However, continued weakness in its Linear Networks segment remains a headwind. Persistent declines in traditional TV viewership and a challenging ad market likely contributed to another drop in network revenues for the to-be-reported quarter.

Warner Bros. Discovery’s advertising performance is expected to have faced a modest setback in the second quarter of 2025. Following a strong first-quarter boost from March Madness, the company’s second-quarter ad revenues are likely to have declined 2% year over year. The absence of the Final Four, only partially offset by the Stanley Cup Finals, created a softer backdrop for sports-driven ad demand.

What Our Model Says About WBD Stock

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, which is not the the exact case here.

WBD currently has an Earnings ESP of -47.89% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some other companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:

Central Garden & Pet CENTA has an Earnings ESP of +6.98% and currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

CENTA shares have returned 8.2% in the year-to-date period. CENTA is set to report its third-quarter fiscal 2025 results on Aug. 6.

Accel Entertainment ACEL currently has an Earnings ESP of +22.73% and a Zacks Rank #2.

ACEL shares have risen 15.3% in the year-to-date period. ACEL is set to report its second-quarter 2025 results on Aug. 5.

Amer Sports, Inc. AS has an Earnings ESP of +50.00% and a Zacks Rank of 2 at present.

AS shares have appreciated 38.4% in the year-to-date period. AS is set to report its second-quarter 2025 results on Aug. 19.

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This article originally published on Zacks Investment Research (zacks.com).

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