Warner Bros. Discovery
WBD,
stock was down 0.2% in premarket trades on Tuesday after the company lowered its 2023 financial guidance due to the ongoing strikes by the Writers Guild of America and the SAG-AFTRA actors in Hollywood. “While WBD is hopeful that these strikes will be resolved soon, it cannot predict when the strikes will ultimately end,” the company said. “With both guilds still on strike today, the company now assumes the financial impact to WBD of these strikes will persist through the end of 2023.” The company estimated a $300 million to $500 million impact on its full-year adjusted earnings before interest, taxes, depreciation and amortization due to the strikes, for a range of $10.5 billion to $11 billion. With a boost from the “Barbie” movie and other factors, the company expects third-quarter free cash flow of $1.7 billion, ahead of the FactSet consensus analyst estimate of $1.65 billion.
