Industry Analysts Just Made A Notable Upgrade To Their Warner Bros. Discovery, Inc. (NASDAQ:WBD) Revenue Forecasts

Shareholders in Warner Bros. Discovery, Inc. (NASDAQ:WBD) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the current consensus from Warner Bros. Discovery's eleven analysts is for revenues of US$49b in 2022 which - if met - would reflect a major 287% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$42b in 2022. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

View our latest analysis for Warner Bros. Discovery

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Warner Bros. Discovery's past performance and to peers in the same industry. It's clear from the latest estimates that Warner Bros. Discovery's rate of growth is expected to accelerate meaningfully, with the forecast 5x annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Warner Bros. Discovery is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Warner Bros. Discovery.

Analysts are definitely bullish on Warner Bros. Discovery, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. You can learn more, and discover the 1 other concern we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.