11:17 AM EDT, 07/01/2025 (MT Newswires) -- Warner Bros. Discovery's ( WBD ) Q2 earnings will likely show strong performance in its Studios segment driven by box office gains and TV momentum, though broader results remain pressured by headwinds in the linear business, BofA Securities said in a note Tuesday.

The firm said strength in theatrical releases, continued momentum in TV, and easier comparisons should lead to "significant" year-over-year earnings before interest, taxes, depreciation, and amortization growth in the Studios segment.

The brokerage raised its Q2 adjusted EBITDA estimate for Studios to $651 million from $625 million, while maintaining its consolidated revenue and EBITDA forecasts at $9.6 billion and $1.79 billion, respectively.

BofA also highlighted Warner Bros. Discovery's ( WBD ) relaunch of the DC Universe in Q3 with the release of Superman, which it said could be a key driver of a broader Studio turnaround, with spillover potential into direct-to-consumer, gaming, and consumer products.

The firm noted that the planned separation of Warner Bros. Discovery ( WBD ) into two companies, Streaming & Studios and Global Networks, could help unlock value over time.

BofA boosted its price objective on the company to $16 from $14 and maintained its buy rating.

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