Warner Bros. Discovery Shares Drop Following Q2 Earnings Report
Portfolio Pulse from Vaishali Prayag
Warner Bros. Discovery (NASDAQ:WBD) shares dropped 8.75% following a disappointing Q2 earnings report. The company missed revenue and EPS estimates, with significant declines in its Networks segment and Direct-to-Consumer revenues. Despite adding 3.6 million new global subscribers, the growth was insufficient to offset U.S. market declines. Analysts have adjusted their ratings and price targets, mostly lowering them.
August 08, 2024 | 6:32 pm
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NEGATIVE IMPACT
Warner Bros. Discovery reported Q2 revenue of $9.713 billion, missing the $10.071 billion estimate. EPS loss was $4.07 per share, far below the expected 19 cents loss. Networks revenue dropped 8%, and DTC revenues fell 5% despite adding 3.6 million new subscribers. Analysts lowered their price targets, contributing to an 8.75% drop in share price.
The significant miss on both revenue and EPS, combined with declines in key segments and lowered analyst price targets, has led to a sharp drop in WBD's share price. The market reaction reflects investor disappointment and reduced confidence in the company's short-term performance.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100