Company Overview - Warner Bros. Discovery (WBD) ended the recent trading session at $27.19, showing a -1.2% change from the previous day's closing price, which is less than the S&P 500's daily loss of 0.84% [1] - The company has experienced a loss of 3.54% over the previous month, underperforming the Consumer Discretionary sector's loss of 3.44% and the S&P 500's gain of 1.8% [2] Financial Performance - Warner Bros. Discovery is projected to report earnings of $0.08 per share, indicating a year-over-year growth of 140%, while the revenue is estimated at $9.46 billion, reflecting a 5.7% decline from the same quarter last year [3] - For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.64 per share and revenue of $37.29 billion, representing shifts of +113.85% and 0% respectively from the last year [4] Analyst Insights - Recent revisions to analyst forecasts for Warner Bros. Discovery are important as they reflect evolving short-term business trends, with positive estimate revisions indicating optimism about the business outlook [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Warner Bros. Discovery at 3 (Hold), with a 12.1% fall in the Zacks Consensus EPS estimate over the past month [6] Valuation Metrics - Warner Bros. Discovery has a Forward P/E ratio of 119.65, which is significantly higher than the industry average Forward P/E of 13.35 [7] - The Broadcast Radio and Television industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 63, placing it in the top 26% of over 250 industries [7]

Core Viewpoint - Paramount is maintaining its $30-a-share bid for Warner Bros. Discovery, appealing directly to shareholders despite Warner's board unanimously rejecting the offer [2][3]. Group 1: Paramount's Bid - Paramount's offer includes $30 in cash per share for all of Warner Bros. Discovery, which encompasses a significant portfolio of cable channels such as CNN, HGTV, TBS, and Animal Planet [3][5]. - The company has addressed Warner's concerns regarding the debt load associated with the takeover by providing a personal guarantee from billionaire Larry Ellison for the equity portion of the financing [2][5]. Group 2: Warner Bros. Discovery's Position - Warner's board has deemed Netflix's bid of $27.75 in cash and stock as superior, citing Netflix's stronger financial position [4]. - Warner is facing potential costs of billions, including a $2.8 billion break-up fee, if it were to abandon its agreement with Netflix [4]. Group 3: Market Context - The valuation of Warner's cable channel portfolio has become contentious in the ongoing sale discussions [5]. - Warner shareholders have until January 21 to consider Paramount's offer, with the possibility of an extension [5].

Core Viewpoint - Paramount's attempt to acquire Warner Bros. Discovery faces significant challenges as Warner's board has rejected its revised $108 billion bid, citing concerns over the substantial debt financing required for the acquisition [1][4]. Group 1: Acquisition Attempt - Warner's board unanimously rejected Paramount's latest hostile offer, despite tech billionaire Larry Ellison's personal guarantee of the equity portion of the bid [2]. - This rejection marks the sixth time Warner's board has declined Paramount's offer since interest was first expressed in September [3]. - Warner's board emphasized that the proposed acquisition would require $94.65 billion in debt and equity financing, which is nearly seven times Paramount Skydance's market value of $14 billion [4]. Group 2: Financial Concerns - The structure of Paramount's proposal resembles a leveraged buyout, which, if successful, would become the largest leveraged buyout in U.S. history [4]. - Warner's board highlighted the extraordinary amount of debt financing as a significant risk factor, especially when compared to the certainty of a merger with Netflix [5]. - Paramount is under pressure to either secure better financing or increase its cash offer above $30 per share to make the bid more attractive [5]. Group 3: Future Possibilities - Analysts suggest that there is still a potential path for Paramount to outbid Netflix, but this would necessitate a substantial overhaul of their current bid [7]. - A dramatic increase in cash investment from the Ellison family or their financing partners would be essential for Paramount to enhance its offer [7].

Core Insights - Warner Bros. Discovery reported a quarterly loss of $0.06 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.04, and compared to earnings of $0.05 per share a year ago [1][2] - The company's revenues for the quarter ended September 2025 were $9.05 billion, missing the Zacks Consensus Estimate by 1.44% and down from $9.62 billion a year ago [3] - The stock has increased approximately 115.3% year-to-date, significantly outperforming the S&P 500's gain of 15.6% [4] Financial Performance - The earnings surprise for the latest quarter was -50.00%, with the company having surpassed consensus EPS estimates only once in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $9.58 billion, and for the current fiscal year, it is $0.37 on revenues of $37.55 billion [8] Industry Context - Warner Bros. Discovery operates within the Broadcast Radio and Television industry, which is currently ranked in the top 41% of over 250 Zacks industries [9] - The performance of the stock may be influenced by the overall industry outlook, as historically, the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9] Future Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [4][5] - The estimate revisions trend prior to the earnings release was mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Warner Bros. Discovery (WBD) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2] Earnings Expectations - The earnings report is set to be released on November 6, with expectations that better-than-expected results could drive the stock higher, while missing estimates may lead to a decline [2] - The consensus EPS estimate for the upcoming quarter is a loss of $0.04 per share, reflecting a significant year-over-year change of -180%, with revenues projected at $9.18 billion, down 4.6% from the previous year [3] Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 78.57%, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Warner Bros. Discovery is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +35.00%, suggesting a bullish outlook from analysts [12] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - Warner Bros. Discovery has beaten consensus EPS estimates in two out of the last four quarters, with a notable surprise of +493.75% in the last reported quarter [13][14] Bottom Line Considerations - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [15] - Despite the positive indicators, it is essential for investors to consider additional factors before making investment decisions regarding Warner Bros. Discovery [17]

Core Insights - Warner Bros. Discovery (WBD) closed at $18.86, reflecting a -3.33% change from the previous day, underperforming the S&P 500's gain of 0.26% [1] - The company has seen a significant stock increase of 67.61% over the past month, while the Consumer Discretionary sector has decreased by 0.21% [1] Earnings Expectations - The upcoming earnings release is expected to show an EPS of -$0.08, a 260% decline year-over-year, with revenue anticipated at $9.13 billion, down 5.17% from the previous year [2] - For the full year, earnings are projected at $0.34 per share and revenue at $37.52 billion, indicating a 107.36% increase in earnings but a 4.58% decrease in revenue compared to the prior year [3] Analyst Estimates and Stock Performance - Recent changes in analyst estimates are crucial for investors, as positive revisions can indicate an optimistic business outlook [3][4] - The Zacks Rank system, which evaluates estimate changes, has shown that stocks rated 1 (Strong Buy) have historically outperformed, with an average annual return of +25% since 1988 [5] Valuation Metrics - Warner Bros. Discovery has a Forward P/E ratio of 58, significantly higher than the industry average of 29.62, indicating a premium valuation [6] - The company has a PEG ratio of 2.54, compared to the industry average of 2.01, suggesting a higher expected earnings growth rate relative to its price [7] Industry Context - The Broadcast Radio and Television industry, part of the Consumer Discretionary sector, ranks 183rd in the Zacks Industry Rank, placing it in the bottom 26% of over 250 industries [8]

Group 1: Earnings Performance - Warner Bros. Discovery reported quarterly earnings of $0.63 per share, significantly beating the Zacks Consensus Estimate of a loss of $0.16 per share, and improving from a loss of $4.07 per share a year ago [1] - The earnings surprise was +493.75%, contrasting with a previous quarter where the company had a loss of $0.18 per share against an expected loss of $0.12, resulting in a surprise of -50% [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times [2] Group 2: Revenue Performance - The company posted revenues of $9.81 billion for the quarter ended June 2025, which missed the Zacks Consensus Estimate by 0.15%, but showed an increase from year-ago revenues of $9.71 billion [3] - Warner Bros. Discovery has not been able to beat consensus revenue estimates over the last four quarters [3] Group 3: Stock Performance and Outlook - Warner Bros. Discovery shares have increased by approximately 21% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [4] - The future performance of the stock will depend on management's commentary during the earnings call and the company's earnings outlook [4][5] - The current consensus EPS estimate for the coming quarter is $0.17 on revenues of $9.25 billion, and for the current fiscal year, it is -$0.04 on revenues of $37.91 billion [8] Group 4: Industry Context - The Broadcast Radio and Television industry, to which Warner Bros. Discovery belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges ahead [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Warner Bros. Discovery's stock performance [6]

Group 1 - Warner Bros. Discovery's stock increased by 1.43% to $13.50, outperforming the S&P 500 which gained 0.07% [1] - Over the past month, shares of Warner Bros. Discovery rose by 22.45%, significantly surpassing the Consumer Discretionary sector's gain of 4.6% and the S&P 500's gain of 5.71% [1] Group 2 - The upcoming earnings release for Warner Bros. Discovery is scheduled for August 7, 2025, with projected EPS of -$0.15, indicating a 96.31% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is $9.78 billion, reflecting a 0.69% increase from the previous year [2] Group 3 - For the full year, analysts expect earnings of -$0.04 per share and revenue of $37.84 billion, representing changes of +99.13% and -3.78% respectively from last year [3] Group 4 - Recent changes to analyst estimates for Warner Bros. Discovery are crucial for investors, as they indicate the evolving nature of near-term business trends [4] - Upbeat revisions in estimates suggest a favorable outlook on the company's health and profitability [4] Group 5 - Research indicates that estimate revisions correlate with near-term share price momentum, which is utilized in the Zacks Rank model [5] Group 6 - The Zacks Rank system, ranging from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 rated stocks averaging a 25% annual return since 1988 [6] - The Zacks Consensus EPS estimate for Warner Bros. Discovery has decreased by 47.12% in the past month, and the company currently holds a Zacks Rank of 3 (Hold) [6] Group 7 - The Broadcast Radio and Television industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 170, placing it in the bottom 32% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Performance - Warner Bros. Discovery's stock decreased by 1.78% to $11.02, underperforming the S&P 500's daily loss of 0.79% [1] - The stock has increased by 14.26% over the past month, outperforming the Consumer Discretionary sector's gain of 6.93% and the S&P 500's gain of 5.22% [1] Earnings Expectations - The company is set to release its earnings report on August 7, 2025, with an anticipated EPS of -$0.16, reflecting a 96.07% increase compared to the same quarter last year [2] - Quarterly revenue is expected to be $9.77 billion, up 0.6% from the previous year [2] Full Year Projections - For the full year, earnings are projected at -$0.04 per share, showing a 99.13% increase, while revenue is expected to be $37.83 billion, down 3.8% from the prior year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for Warner Bros. Discovery are important as they indicate short-term business trends and analyst sentiment regarding profitability [4] - Positive changes in estimates are associated with stock price performance [5] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 ranked stocks have yielded an average annual return of +25% since 1988 [6] - Warner Bros. Discovery currently holds a Zacks Rank of 3 (Hold), with a 77.14% upward shift in the consensus EPS estimate over the past month [6] Industry Context - The Broadcast Radio and Television industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 77, placing it in the top 32% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Warner Bros. Discovery reported a quarterly loss of $0.18 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.12, but an improvement from a loss of $0.40 per share a year ago [1][2] - The company's revenues for the quarter were $8.98 billion, missing the Zacks Consensus Estimate by 7.34% and down from $9.96 billion year-over-year [3] - The stock has underperformed the market, losing about 19% since the beginning of the year compared to the S&P 500's decline of 4.3% [4] Financial Performance - The earnings surprise for the latest quarter was -50%, and the company has only surpassed consensus EPS estimates once in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.19 on revenues of $9.72 billion, and for the current fiscal year, it is -$0.14 on revenues of $38.68 billion [8] Industry Context - Warner Bros. Discovery operates within the Zacks Broadcast Radio and Television industry, which is currently ranked in the top 38% of over 250 Zacks industries [9] - The industry outlook can significantly impact the stock's performance, with research indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9] Future Outlook - The estimate revisions trend for Warner Bros. Discovery is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] - The upcoming earnings call will be crucial for assessing future earnings expectations and stock price movements [4][5]