Should investors be concerned about WBD's EPS trends?

**Warner Bros. Discovery's (WBD) EPS trends present significant concerns for investors.** Here's a detailed analysis: 1. **Significant EPS Miss**: WBD's reported EPS of -$0.20 for Q4 2024 missed the expected -$0.02 by a substantial margin of $0.18. This indicates a stark underperformance against expectations. 2. **Consistent Negative Trends**: The EPS trend has been negative, with a Q2 2024 EPS of -$0.13 and a Q3 EPS of -$0.21. This consistent decline suggests underlying challenges within the company that are impacting profitability. |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |WBD|WBD.O|Warner Bros|2024 Q1|9.090909090909086|-0.4|185| |WBD|WBD.O|Warner Bros|2024 Q2|-698.0392156862746|-4.07|185| |WBD|WBD.O|Warner Bros|2024 Q3|129.41176470588235|0.05|185| 3. **Analyst Revisions and Ratings**: Analysts have revised down the EPS estimate for the upcoming quarter, reflecting a more pessimistic outlook. This could signal that the current trend of declining EPS may continue. 4. **Market Performance and Investor Sentiment**: Despite the earnings miss, WBD's stock has seen some movement, with a 5.24% increase in premarket trading following the earnings release. However, the stock's performance has been volatile, with a 3.53% drop in the past month, which could reflect investor concerns about the company's financial health and future prospects. 5. **Operational Challenges**: The EPS miss is attributed to challenges in the Networks and Studios segments, despite strong growth in the Direct-to-Consumer segment. This suggests that the core business segments are facing significant headwinds, which could impact long-term profitability if not addressed. 6. **Technical Indicators**: The stock's technical indicators, such as the MACD, RSI, and KDJ, suggest a bearish sentiment. The MACD at 0 indicates a potential reversal or a pause in the stock's downward trend. However, the RSI and KDJ values of 35.06 and 37.76, respectively, suggest that the stock is neither overbought nor oversold, but the lack of positive momentum could be a concern. |code|Ticker|Name|Date|RSI|KDJ|MACD|market_code| |---|---|---|---|---|---|---|---| |WBD|WBD.O|Warner Bros|20250328|35.0626|37.7644|-0.0037|185| In conclusion, the combination of a significant EPS miss, consistent negative trends, analyst revisions, and operational challenges raises concerns for investors. The company's ability to address these issues and improve profitability in the coming quarters will be crucial in determining the long-term outlook for WBD. Investors should closely monitor the company's performance and any strategic initiatives that may impact its financial health and stock performance.