Paramount Global (PARA) stock sank more 8% in afternoon trading on Tuesday after CEO Bob Bakish warned a weakening advertising market will likely impact fourth quarter earnings.
“We do now see the fourth quarter coming in a bit below the third quarter,” Bakish said at a UBS conference in New York City, revising previous guidance that the fourth quarter would be in line with Q3 results.
“As we have navigated leading into this point, we had looked for some improvement in certain sectors. We haven’t seen that,” Bakish said. The executive added the ad slowdown has hurt its free ad-supported video streaming service, Pluto TV, while foreign exchange challenges have also pressured the company’s bottom line.
Paramount reported weak third-quarter earnings last month that missed on both the top and bottom lines. Advertising revenue declined 2% in the quarter, while profits suffered as a result of greater investments in content, marketing, and international expansion.
Still, Bakish struck an…