Warner Bros. Discovery And Beyond Meat Share Their Earnings Only To See Opposite Outcomes

Warner Bros. Shares Experience a Plunge

The share prices for Warner Bros. Discovery recorded a major slump after the company shared earnings for the fourth quarter.

The company did not share promising earnings, which was not a good update for the shareholders. As the shareholders lost their confidence and trust in the company’s shares, its share prices dipped significantly.

The latest updates suggest that the officials at Warner Bros. Discovery revealed that their losses were much higher than they had predicted.

Warner Bros. Discovery has been formed to operate as the media assets of AT&T’s spinoff. The studio and entertainment group revealed that their losses were wider than expectations.

Sharing the details raised concerns among the investors who were hoping for a strong performance. As the earnings results were unexpectedly negative, the shareholders found it to be a good idea to withdraw.

This led to a shed in the share prices of the company in the latest market trading session.

Earnings Reported by Warner Bros. Discovery

For the fourth quarter of 2022, Warner Bros. Discovery reported that the losses they recorded were 89 cents per share.

Shockingly, the analysts at Wall Street had expected that the owner of Discovery+ and HBO Max streaming services would see a loss as high as 21 cents per share.

As the losses came so high, turns out, the company had a rebuttal ready for the shareholders if they enquired about the high losses.

Warner Bros. Discovery executives claimed that they have been working on the restructuring of their company. As part of the process, they had to incur many charges and this led to a surge in losses.

Even the actual revenue Warner Bros. Discovery reported for the same quarter was lower than anticipated. The expectations for revenue were set by the analysts to $11 billion and the company failed to meet them.

However, Warner Bros. Discovery did top the revenue forecasts for the streaming segment. It reported that the forecasts for the streaming revenue were set to $2.45 billion and they successfully achieved that.

They were also glad to reveal that their subscriber base had also surged more than expected in the respective quarter. In the fourth quarter, their subscriber base rose to 96 million after increasing by 1.1 million.

As Warner Bros. Discovery shared the earnings, its share prices recorded a 4.2% dip. Following the dip, the share prices for the company dipped to $15.07 per share.

Beyond Meat, Shares Pumped Up

The share prices for Beyond Meat were pumped up as the company shared its earnings for the fourth quarter.

The plant-based food maker recorded a significant push in the shares after it reported that the loss it recorded was lower than expectations.

The company even made predictions of high and solid revenues in the running quarter and the entire ongoing year.

Earnings Expectations

For the entire year of 2022, Beyond Meat has set its prediction to as high as $415 million for sales. On the lower side, the company has set sales expectations to $375 million.

The company has revealed that they are aiming to ensure that its plant-based units are revived based on the demand of the consumers.

Beyond Meat did talk about the rising and persistent inflation rates. According to the plant-based meat maker, they are expecting a reduction in the consumption rate of the consumers due to rising inflation rates.

Consumers are pulling back from their spending and expenditures, which is also impacting their sales. Therefore, it is important that they revive their growth to meet the demand of the consumers.

For the fourth quarter, Beyond Meat reported that their revenues have declined by 20.7%, compared to the past year. Their revenues for the fourth quarter are down to $79.9 million.

The analysts had predicted that the revenue would be $75.9 million. As for the losses, they reported losses of $1.05 per share, which translates to $67 million, much lower than expectations.

Following the news, the company’s shares have surged by 14% and they are now trading at $19.53 per share.