WBD Stock Forecast & Price Target

Warner Bros. Discovery (WBD) demonstrated a notable increase in direct-to-consumer (DTC) subscribers, reaching 116.9 million by the end of 4Q24, reflecting a year-over-year growth of 20% and a quarterly gain of 6.4 million subscribers. The company reported a 5% year-over-year increase in DTC revenues, totaling $2.7 billion, alongside a significant turnaround in EBITDA, achieving $409 million compared to a previous loss, indicating robust margin expansion. Revenue projections suggest a positive trajectory, with estimates of $39.3 billion for 2025 and $40.5 billion for 2026, supported by enhanced profitability in the studios segment.

Warner Bros. Discovery reported fourth-quarter revenues of $10.0 billion, reflecting a 2% year-over-year decline, which was 2% lower than expectations, in conjunction with an adjusted EBITDA of $2.7 billion, indicating a positive increase of 10% year-over-year but still overshadowed by considerable losses per share at $0.20, a 23% decrease from the previous year. The networks segment experienced a significant revenue drop of 5% year-over-year, accompanied by a concerning 13% decline in adjusted EBITDA, which illustrates the persistent pressure faced by its television networks due to a 17% decrease in advertising revenue and a 9% drop in subscribers. The company's financial health is further underscored by a notable decline in cash from operations to $2.7 billion, a 24% fall from the previous year, and a projected lower financial outlook for fiscal year 2026, with expected flat revenues and a 3% decrease in adjusted EBITDA.