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

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

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 Price Performance

NYSE:SKYD traded up $0.69 during trading hours on Monday, hitting $8.70. 28,572,598 shares of the company were exchanged, compared to its average volume of 30,892,074. Skydance has a one year low of $6.61 and a one year high of $17.16. The company has a fifty day simple moving average of $6.74 and a 200 day simple moving average of $5.52. The company has a quick ratio of 0.88, a current ratio of 1.04 and a debt-to-equity ratio of 1.13.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on SKYD. Stephens upgraded shares of Skydance from a “buy” rating to an “overweight” rating in a research note on Friday, October 23rd. Citigroup assumed coverage on shares of Skydance in a research report on Monday, October 26th. They set a “buy” rating and a $10.00 price objective for the company. JPMorgan Chase & Co. assumed coverage on shares of Skydance in a research note on Friday, October 23rd. They issued a “neutral” rating and a $9.00 price objective for the company. Jefferies Financial Group upgraded shares of Skydance to a “buy” rating in a report on Friday, October 23rd. Finally, TD Cowen lowered their target price on Skydance from $6.50 to $4.00 and set a “hold” rating for the company in a report on Wednesday, August 5th. Ten equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and seven have given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $6.02.

Skydance News Summary

Here are the key news stories impacting Skydance this week:

• Positive Sentiment: Skydance reported adjusted earnings of $0.45 per share, above the $0.18 consensus estimate. Paramount+ revenue rose 21%, supporting the company’s streaming-growth story. Earnings results
• Positive Sentiment: Management detailed a target of more than $6 billion in savings over three years, through measures including combining operations, reducing technology costs and streamlining management. If achieved, savings could improve profitability following the Warner Bros. deal. Cost savings plans
• Positive Sentiment: Skydance plans to offer a Paramount+ and HBO Max bundle in early 2027, aiming to strengthen its streaming offering and attract or retain subscribers. Streaming bundle timeline
• Neutral Sentiment: Third-quarter revenue was $7.03 billion, about $10 million below estimates. The reported results cover the period before the Warner Bros. Discovery acquisition closed, so they do not yet show the combined company’s financial performance. Quarterly revenue and earnings
• Negative Sentiment: Skydance has begun layoffs in its games division, while DC Studios is replacing leaders James Gunn and Peter Safran. These changes may reduce costs or reset strategy, but also create uncertainty around execution and creative leadership. DC Studios leadership changes

About Skydance

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