Keybancanalyst Brandon Nispel upgradedWarner Bros. DiscoveryInc(NASDAQ:WBD) from Sector Weight to Overweight and a $11 price target.
WBD reported fiscal first-quarter revenue of $9.96 billion, a 6.9% year-on-year decrease, according to Nispel. This was against a consensus of $10.25 billion. The total adjusted EBITDA of $2.10 billion, a 19.5% year-on-year decrease, fell short of the consensus of $2.18 billion.
Nispel added that a $200 million content impairment for the Studios segment negatively impacted the results.
However, free cash flow (FCF) of $390 million exceeded the consensus of $8.0 million, thanks to a strike that improved working capital and reduced capital spending.
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