Skydance (NYSE:SKYD) Posts Quarterly Earnings Results, Beats Expectations By $0.27 EPS

Skydance (NYSE:SKYD) issued its quarterly earnings data on Monday. The media and entertainment company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.18 by $0.27, Zacks reports. Skydance had a positive return on equity of 4.11% and a negative net margin of 2.13%.

Here are the key takeaways from Skydance’s conference call:

• Management reaffirmed its target of at least $6 billion in annual run-rate synergies within three years, with 30% expected by the end of 2027 and 70% by the end of 2028. The company expects $4 billion in cash costs to achieve the program, including $1.5 billion–$2 billion in 2027.
• Warner Bros.’ underperforming film slate is expected to create a $200 million Q4 adjusted EBITDA headwind, more than offsetting Paramount’s stronger film performance and slowing combined studio revenue and EBITDA growth.
• Management expects continued strong direct-to-consumer growth and plans to bundle Paramount+ and HBO Max in early 2027, with the services’ combined reach at about 203 million subscribers. The company also expects to converge their technology platforms in roughly a year, though pricing changes will be phased in cautiously.
• For 2027, management expects growth in D2C revenue, Skydance Studios revenue, and total adjusted EBITDA, and forecasts free cash flow of break-even or better, including synergy costs. It reiterated its medium-term goals of mid-single-digit revenue growth, mid-20% adjusted EBITDA margins, $10 billion in free cash flow by 2030, and net leverage below 3x by the end of 2029.
• The company plans to manage linear TV for cash generation while acknowledging ongoing structural declines; it said those declines have moderated slightly in recent quarters. Management described potential revenue synergies in licensing, advertising, distribution, and streaming as upside that is not included in its business plan.

Skydance Stock Performance

SKYD traded up $0.69 during midday trading on Monday, reaching $8.70. The company’s stock had a trading volume of 28,572,598 shares, compared to its average volume of 14,631,088. The stock has a market cap of $9.76 billion, a P/E ratio of 30.00 and a beta of 1.64. The company has a fifty day simple moving average of $6.68 and a 200 day simple moving average of $5.50. The company has a current ratio of 1.04, a quick ratio of 0.88 and a debt-to-equity ratio of 1.13. Skydance has a twelve month low of $6.61 and a twelve month high of $17.16.

Trending Headlines about Skydance

Here are the key news stories impacting Skydance this week:

• Positive Sentiment: Skydance reported quarterly earnings per share of $0.45, ahead of analysts’ $0.18 consensus. Paramount+ revenue rose 21% in the quarter, supporting the company’s streaming growth strategy. Quarterly earnings report
• Positive Sentiment: The company outlined a plan to achieve $6 billion in cost savings over three years by combining operations, streamlining management, and reducing technology and marketing expenses. If delivered, the cuts could improve efficiency at the newly merged business. Skydance cost-savings plan
• Positive Sentiment: Skydance plans to offer Paramount+ and HBO Max as a bundle early next year, a move that could strengthen its streaming appeal and help attract or retain subscribers. Streaming bundle plans
• Negative Sentiment: Revenue came in at $7.03 billion, about $10 million below analysts’ expectations. The quarter also had a negative net margin, underscoring that the earnings beat has not yet translated into overall profitability. Earnings and revenue results
• Neutral Sentiment: Skydance is changing leadership at DC Studios, with James Gunn and Peter Safran set to leave and Jeremy Latcham taking over. The impact on the studio’s creative direction and future output remains uncertain. DC Studios leadership change

Wall Street Analysts Forecast Growth

SKYD has been the subject of several analyst reports. Weiss Ratings restated a “sell (d)” rating on shares of Skydance in a report on Tuesday, November 3rd. Morgan Stanley increased their price target on Skydance from $5.00 to $5.75 and gave the company an “overweight” rating in a report on Tuesday, September 22nd. Piper Sandler lowered shares of Skydance to a “neutral” rating in a research report on Friday, October 23rd. UBS Group reduced their price objective on shares of Skydance from $5.00 to $4.00 and set a “sell” rating for the company in a research note on Wednesday, August 5th. Finally, Jefferies Financial Group raised shares of Skydance to a “buy” rating in a report on Friday, October 23rd. Ten analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and seven have issued a Sell rating to the company. Based on data from MarketBeat.com, Skydance has a consensus rating of “Hold” and a consensus price target of $6.02.

Skydance Company Profile

Skydance Corporation is a global media and entertainment company formerly known as Paramount Skydance Corporation.