Skydance (NYSE:SKYD) Releases Quarterly Earnings Results

Skydance (NYSE:SKYD) posted 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%. The business had revenue of $7.03 billion for the quarter, compared to analyst estimates of $7.07 billion.

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 Up 8.6%

Shares of SKYD opened at $8.70 on Tuesday. Skydance has a 1 year low of $6.61 and a 1 year high of $17.16. The business has a 50-day moving average of $6.74 and a 200-day moving average of $5.52. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.88 and a current ratio of 1.04.

Skydance News Summary

Here are the key news stories impacting Skydance this week:

• Positive Sentiment: Skydance reported third-quarter adjusted EPS of $0.45, above the $0.18 consensus estimate. Paramount+ revenue also rose 21%, supporting the company’s case for streaming as a growth driver. Revenue of $7.03 billion was slightly below expectations, however. Earnings results
• Positive Sentiment: The company aims to cut $6 billion in costs over three years by combining operations, reducing technology expenses and eliminating management layers. If achieved, the savings could help offset the scale and cost of the Warner Bros. deal. Cost-savings plan
• Positive Sentiment: Skydance plans to offer a Paramount+ and HBO Max bundle in early 2027, potentially strengthening its streaming offering and helping attract or retain subscribers. Streaming bundle timeline
• Neutral Sentiment: Marvel veteran Jeremy Latcham is set to lead DC Studios, replacing James Gunn and Peter Safran. The leadership change may reset creative direction, but its effect on DC’s future slate and performance is uncertain. DC Studios leadership change
• Negative Sentiment: The merger brings significant financial and execution risks. One report highlights roughly $87 billion in debt, while the planned savings and combined streaming strategy still need to be delivered. Debt and franchise reliance
• Negative Sentiment: Layoffs and restructuring have begun in Skydance Games following the acquisition. While cuts may support cost targets, disruption and integration challenges could weigh on operations. Skydance Games layoffs

Analysts Set New Price Targets

SKYD has been the subject of a number of recent analyst reports. Stephens raised shares of Skydance from a “buy” rating to an “overweight” rating in a research report on Friday, October 23rd. Piper Sandler cut Skydance to a “neutral” rating in a research note on Friday, October 23rd. Huber Research upgraded shares of Skydance to an “overweight” rating in a report on Tuesday, October 27th. Jefferies Financial Group raised shares of Skydance to a “buy” rating in a research note on Friday, October 23rd. Finally, JPMorgan Chase & Co. assumed coverage on Skydance in a research note on Friday, October 23rd. They issued a “neutral” rating and a $9.00 price objective on the stock. Ten equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and seven have issued a Sell rating to the stock. According to data from MarketBeat, Skydance has an average rating of “Hold” and a consensus target price of $6.02.

Skydance Company Profile

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