Financial analysts at Barrington Research have recently refined their outlook for Warner Bros. Discovery Inc. (WBD), significantly adjusting earnings estimates for the upcoming second quarter of 2025. This revised forecast highlights an evolving landscape for the media and entertainment giant, drawing keen interest from investors closely monitoring WBD stock performance and market sentiment.

Specifically, Barrington Research analyst P. Sholl has increased the Q2 2025 earnings per share (EPS) forecast for WBD from a previous estimate of ($0.25) to ($0.21). This upward revision underscores a more optimistic perspective on the company’s near-term financial health, contributing to the ongoing discussion around WBD earnings forecasts. Barrington Research maintains an “Outperform” rating on the stock, setting a price objective of $16.00, which contrasts with the broader consensus estimate for Warner Bros. Discovery’s current full-year earnings at ($4.33) per share.

Beyond the immediate Q2 2025 projections, Barrington Research has also provided detailed future earnings projections for WBD. These include estimates of ($0.05) EPS for Q3 2025, ($0.41) EPS for FY2025, ($0.05) EPS for Q1 2026, ($0.19) EPS for Q2 2026, ($0.04) EPS for Q3 2026, ($0.19) EPS for FY2026, and ($0.12) EPS for FY2027. Such comprehensive forecasts offer a long-term perspective on the company’s financial trajectory, crucial for investment analysis.

Barrington’s updated view comes amidst a flurry of activity from other prominent brokerages. Morgan Stanley, for instance, lowered its price target from $12.00 to $10.00 while maintaining an “equal weight” rating. In contrast, UBS Group and Barclays both lifted their price targets to $10.00 and $13.00 respectively, with “neutral” and “equal weight” ratings. Bank of America raised its target to $16.00 with a “buy” rating, and Huber Research notably upgraded WBD from a “strong sell” to a “strong-buy” rating, indicating a dynamic range of analyst ratings across the industry.

The consensus among equities research analysts currently places WBD with an average rating of “Moderate Buy” and an average price target of $12.66. This reflects a diverse but generally cautious optimism, with twelve analysts rating the stock a “hold,” eleven assigning a “buy,” and one issuing a “strong buy.” These collective stock market insights provide a multifaceted view of investor sentiment and potential future movements.

From a fundamental perspective, Warner Bros. Discovery’s stock opened at $12.87 on a recent Friday. Key financial metrics reveal a current ratio and quick ratio of 0.84, alongside a debt-to-equity ratio of 0.99. The company’s 50-day moving average stands at $11.27, with a 200-day moving average of $10.24, suggesting recent upward momentum. With a market capitalization of $31.59 billion, a P/E ratio of -2.92, and a beta of 1.57, WBD exhibits characteristics of a volatile yet significant player in the media investment sector. The stock has traded between a 1-year low of $6.64 and a 1-year high of $13.86.

In its most recent earnings report, released on Thursday, May 8th, Warner Bros. Discovery reported an EPS of ($0.18), missing analysts’ consensus estimates of ($0.12). The company’s revenue for the quarter was $8.98 billion, falling short of expectations and marking a 9.8% year-over-year decrease. Furthermore, WBD posted a negative return on equity of 30.56% and a negative net margin of 28.16%, indicating financial challenges in the recent period.

Institutional investors have actively adjusted their positions in WBD. Major movements include Auto Owners Insurance Co. boosting its holdings by 5.3%, New York Life Investment Management LLC by 2.0%, Fjarde AP Fonden Fourth Swedish National Pension Fund by 17.9%, and Teacher Retirement System of Texas by 4.7%. Notably, Y Intercept Hong Kong Ltd acquired a new position valued at approximately $21.976 million. These shifts highlight significant institutional confidence and strategic reallocation in WBD stock holdings.

Warner Bros. Discovery, Inc. operates globally across three primary segments: Studios, Network, and DTC (Direct-to-Consumer). The Studios segment focuses on film production, licensing, and distribution, including streaming and interactive gaming. The Network segment manages various television networks, while the DTC segment delivers content directly to consumers. These diverse operations underpin the company’s market position and future growth potential in the global entertainment landscape.