Warner Bros Discovery Tuesday lowered its annual core profit forecast, as it expects the hit from the Hollywood actors and writers strikes to drag until the end of the year.
It now expects adjusted earnings for the full year to be in the range of $10.5 billion to $11 billion.
Warner Bros Discovery had previously provided financial guidance for 2023 assuming the strikes would be resolved by early September and now expects adjusted earnings to be reduced by around $300 million to $500 million.
Shares of the company fell nearly 1% in trading before the bell.
The company added CEO David Zaslav would be participating in an investor conference on Sept. 6, and expects to discuss, among other topics, the impact of the ongoing WGA and SAG-AFTRA strikes.
The studio had previously noted that if the strikes were to continue through the end of the year, it expected marginal gain in free cash flow and a slight decrease in adjusted earnings.
It is now raising full-year free cash flow expectations to at least $5 billion, with the third quarter alone expected to exceed $1.7 billion due to the strong performance of the "Barbie" movie and strike-related factors.