Warner Bros. Discovery Stock Tumbles On Q4 Earnings - Here's Why
Portfolio Pulse from Anusuya Lahiri
Warner Bros. Discovery, Inc (NASDAQ:WBD) reported a Q4 fiscal 2023 revenue decline of 7% year-on-year to $10.28 billion, missing the consensus of $10.37 billion. The EPS loss of $(0.16) also missed the consensus loss of $(0.06). The company experienced declines in studios, networks, and advertising revenues, but saw a slight increase in DTC revenues. Total DTC subscribers decreased, while global DTC ARPU increased. WBD generated $3.58 billion in operating cash flow and held $3.78 billion in cash and equivalents, with a net loss of $(400) million. CEO David Zaslav expressed confidence in the company's 2024 plan, including international expansion and a robust creative pipeline. WBD shares traded lower by 8.79% at $8.72 premarket.
February 23, 2024 | 2:09 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Warner Bros. Discovery reported a Q4 fiscal 2023 revenue decline and an EPS loss greater than expected, with mixed performance across different segments. Shares dropped 8.79% in premarket trading.
The reported revenue decline and greater-than-expected EPS loss indicate underperformance in key financial metrics, which typically leads to negative investor sentiment and a decrease in stock price in the short term. The premarket trading response, with an 8.79% drop in share price, reflects immediate negative market reaction. However, the CEO's confidence in the 2024 plan and the slight growth in DTC revenues provide some positive outlook, though not enough to offset the negative impact in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100