Warner Bros. Discovery (WBD) ended the recent trading session at $28.24, demonstrating a -1.19% change from the preceding day's closing price. This change was narrower than the S&P 500's daily loss of 2.06%. Elsewhere, the Dow saw a downswing of 1.76%, while the tech-heavy Nasdaq depreciated by 2.39%.
Heading into today, shares of the operator of cable TV channels such as TLC and Animal Planet had lost 0.59% over the past month, outpacing the Consumer Discretionary sector's loss of 2.08% and lagging the S&P 500's gain of 1.63%.
The investment community will be paying close attention to the earnings performance of Warner Bros. Discovery in its upcoming release. The company is expected to report EPS of $0.09, up 145% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $9.45 billion, indicating a 5.77% decline compared to the corresponding quarter of the prior year.
WBD's full-year Zacks Consensus Estimates are calling for earnings of $0.68 per share and revenue of $37.28 billion. These results would represent year-over-year changes of +114.72% and 0%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Warner Bros Discovery. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Warner Bros. Discovery boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Warner Bros. Discovery is presently being traded at a Forward P/E ratio of 109.22. This valuation marks a premium compared to its industry average Forward P/E of 11.67.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Warner Bros. Discovery, Inc. (WBD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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