Warner Bros. Discovery Shows Strong FCF and Deleveraging, Analysts Weigh in on Stock Prospects
Portfolio Pulse from Anusuya Lahiri
Warner Bros. Discovery, Inc (WBD) reported strong 2Q23 results, with revenue and EBITDA ahead of estimates, driven by outperformance at DTC due to licensing deals timing and higher ARPU following Max relaunch. The company's FCF was $1.722 billion, significantly ahead of estimates. Credit Suisse analyst Douglas Mitchelson reiterated an Outperform rating on WBD with a price target of $32. KeyBanc analyst Brandon Nispel reiterated a Sector Weight on the stock, while Needham analyst Laura Martin maintained a Hold rating.
August 04, 2023 | 6:41 pm
News sentiment analysis
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NEGATIVE IMPACT
The guidance commentary on advertising from Warner Bros. Discovery is seen as very negative for Walt Disney Co.
The negative guidance commentary on advertising from Warner Bros. Discovery could impact Walt Disney Co.'s advertising revenue, potentially leading to a decrease in the stock's price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
The guidance commentary on advertising from Warner Bros. Discovery is seen as very negative for Fox Corp.
The negative guidance commentary on advertising from Warner Bros. Discovery could impact Fox Corp.'s advertising revenue, potentially leading to a decrease in the stock's price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
The guidance commentary on advertising from Warner Bros. Discovery is seen as very negative for Paramount Global.
The negative guidance commentary on advertising from Warner Bros. Discovery could impact Paramount Global's advertising revenue, potentially leading to a decrease in the stock's price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Warner Bros. Discovery reported strong 2Q23 results, beating estimates. The company's FCF was significantly ahead of estimates, and it updated its full-year 2023 adjusted EBITDA guidance. Analysts from Credit Suisse, KeyBanc, and Needham provided their ratings on the stock.
The strong 2Q23 results and the updated full-year 2023 adjusted EBITDA guidance are positive news for Warner Bros. Discovery. This, along with the positive ratings from analysts, could lead to an increase in the stock's price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100