Skydance Shares Fall 9% as a $200M Warner Bros. Film Drag Weighs
Summary
Investors looked past an earnings beat after the merged company said underperforming Warner Bros. films will cut fourth-quarter profit.
"Skydance shares fell about 9% to $7.92 in Tuesday morning trading after the merged Paramount and Warner Bros. company's first quarterly report, 24/7 Wall St. reported, leaving the stock down about 40% this year. Chief financial officer Dennis Cinelli said underperforming Warner Bros. films will reduce fourth-quarter adjusted EBITDA by $200 million.
The company posted adjusted earnings of $0.45 a share against a $0.20 consensus and revenue of $7.03 billion, up 4.8%. Studios revenue rose 23% and Paramount+ revenue rose 21%, while TV Media revenue fell 7%. Gross debt stands at $87 billion. Netflix fell 2% and Disney about 1% in the same session.
""Growing our business and paying down debt are our top priorities,"" CEO David Ellison said."
