Shares of Warner Bros. Discovery (WBD) gained in pre-market trading after the company reported better-than-expected earnings in the third quarter. The media and entertainment conglomerate swung to a profit in the third quarter with earnings of $0.05 per share, compared to a loss of $0.17 per share. Analysts were expecting a loss of $0.24 per share.
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Furthermore, the company’s revenues declined by 3% (on a constant currency basis) to $9.6 billion in the third quarter. This fell short of Street estimates of $10.3 billion. Meanwhile, Warner Bros Discovery’s TV networks business, which includes popular channels like Discovery Channel, Animal Planet, and Food Network, reported a 3% revenue increase to $5.01 billion and comprised more than 50% of the company’s total revenues.
This growth was largely driven by this network business sublicensing Olympic sports rights to regional broadcasters across Europe, reflecting the company’s strategic use of high-profile content to generate additional income.
WBD’s Max Streaming Delivers Strongest Subscriber Gain in Q3
Warner Bros. Discovery’s Max streaming platform made a strategic entry into Europe just weeks before the Olympic Games, securing exclusive streaming rights for the event. This move attracted a surge of subscribers. The timely expansion helped Max and Discovery+ add 7.2 million direct-to-consumer subscribers in the third quarter, marking the streaming service’s strongest quarterly subscriber growth since its launch.
What Is the Target Price for WBD?
Analysts remain cautiously optimistic about WBD stock, with a Moderate Buy consensus rating based on 10 Buys, six Holds, and one Sell. Over the past year, WBD has declined by more than 20%, and the average WBD price target of $12.50 implies an upside potential of 49.2% from current levels. These analyst ratings are likely to change following WBD’s results today.
