Warner Bros. Discovery (WBD) Q2 Earnings Report Preview: What To Look For

Global entertainment and media company Warner Bros. Discovery (NASDAQ:WBD) will be announcing earnings results this Thursday before market open. Here’s what to expect.

Warner Bros. Discovery missed analysts’ revenue expectations by 6% last quarter, reporting revenues of $8.98 billion, down 9.8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a miss of analysts’ Advertising revenue estimates.

Is Warner Bros. Discovery a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Warner Bros. Discovery’s revenue to grow 1.4% year on year to $9.85 billion, a reversal from the 6.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.12 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 8 downward revisions over the last 30 days (we track 19 analysts).

Looking at Warner Bros. Discovery’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. News Corp posted flat year-on-year revenue, beating analysts’ expectations by 1%, and Scholastic reported revenues up 7%, topping estimates by 2.8%. Scholastic traded up 23.9% following the results.

Read our full analysis of News Corp’s results here and Scholastic’s results here.

Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Warner Bros. Discovery is up 15.4% during the same time and is heading into earnings with an average analyst price target of $14.63 (compared to the current share price of $12.72).

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