Warner Bros. Says Strikes Could Weigh On Earnings. The Stock Is Rising.

Warner Bros. Discovery says it could take a sizable earnings hit this year, as the strikes in Hollywood roll on. The stock, however, is ticking higher.

Last month, Warner Bros. offered full-year guidance that assumed the strikes would be resolved by early September, the company noted in a securities filing, but as no resolution has been reached yet, it has revised its financial guidance to factor in the strikes continuing through the end of the year.

The entertainment giant is now expecting adjusted earnings before interest, tax, depreciation, and amortization for the year to land between $10.5 billion and $11 billion, reflecting a negative impact of about $300 million to $500 million, largely due to the strikes. Last month, Warner Bros. delayed the release of three big-budget films, another consequence of the strike, The Wall Street Journal reported. The three films, Dune: Part Two, Godzilla x Kong: The New Empire, and Lord of the Rings: The War of the Rohirrim will be released throughout next year, while the second edition of Dune initially was set to debut this November, the Journal reported.Write to Emily Dattilo at emily.dattilo@dowjones.

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