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Warner Bros. Discovery (WBD) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

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For the quarter ended September 2024, Warner Bros. Discovery (WBD - Free Report) reported revenue of $9.62 billion, down 3.6% over the same period last year. EPS came in at $0.05, compared to -$0.17 in the year-ago quarter.

The reported revenue represents a surprise of -2.77% over the Zacks Consensus Estimate of $9.9 billion. With the consensus EPS estimate being -$0.07, the EPS surprise was +171.43%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Warner Bros. Discovery performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total DTC Subscribers: 110.5 million versus 108.31 million estimated by four analysts on average.
  • DTC Subscribers - Domestic: 52.6 million versus the four-analyst average estimate of 53.11 million.
  • Global ARPU: $7.84 compared to the $8.10 average estimate based on four analysts.
  • Domestic ARPU: $11.99 compared to the $12.30 average estimate based on four analysts.
  • Pro Forma Combined DTC Revenues- Total: $2.63 billion versus the five-analyst average estimate of $2.72 billion. The reported number represents a year-over-year change of +8%.
  • Pro Forma Combined Studios Revenues- Total: $2.68 billion versus the five-analyst average estimate of $2.93 billion. The reported number represents a year-over-year change of -16.9%.
  • Revenues (Actual)- Inter-segment eliminations: -$705 million versus the five-analyst average estimate of -$621.23 million. The reported number represents a year-over-year change of +28%.
  • Pro Forma Combined Networks Revenues- Total: $5.01 billion versus $4.80 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +2.9% change.
  • Pro Forma Combined Revenues- Other: $300 million versus $318.68 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -5.4% change.
  • Pro Forma Combined Revenues- Distribution: $4.92 billion versus $4.92 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -2.1% change.
  • Pro Forma Combined Revenues- Advertising: $1.68 billion versus $1.68 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -6.4% change.
  • Pro Forma Combined DTC Revenues- Content: $107 million versus $120 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -10.8% change.
View all Key Company Metrics for Warner Bros. Discovery here>>>

Shares of Warner Bros. Discovery have returned +8.4% over the past month versus the Zacks S&P 500 composite's +3.2% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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