Shares of Warner Bros. Discovery Inc. (WBD) slumped 2.3% in premarket trading Wednesday following the release of their Q3 financial results. Despite revenue slightly exceeding expectations, the company reported a larger net loss than anticipated.
Financial Highlights
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Net Losses: Warner Bros. Discovery Inc. experienced a narrowed net loss of $417 million, or 17 cents a share, compared to $2.31 billion, or 95 cents a share, in the same period last year. However, this surpassed the FactSet consensus for net per-share losses of 9 cents.
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Revenue: The company’s revenue increased by 1.6% to $9.98 billion, slightly surpassing the FactSet consensus of $9.97 billion.
Segment Performance
- Studios, Networks, and Direct-to-Consumer: Despite falling short of expectations, revenue from these segments, which includes HBO Max, did not suffer as much as projected due to inter-segment eliminations.
Market Performance
Over the past three months through Tuesday, Warner Bros. Discovery Inc. stock has dropped by 19.5%, while the S&P 500 has experienced a more modest decline of 2.7%.