Core Insights - TKO Group Holdings reported a quarterly loss of $0.08 per share, missing the Zacks Consensus Estimate of $0.14, and a significant decline from earnings of $0.35 per share a year ago [1] - The earnings surprise was -157.97%, with the company having surpassed consensus EPS estimates only once in the last four quarters [2] Financial Performance - TKO Group generated revenues of $1.04 billion for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 1.37%, and showing a substantial increase from $642.2 million in the same quarter last year [3] - The company has consistently topped consensus revenue estimates, achieving this four times over the last four quarters [3] Market Performance - TKO Group shares have increased by approximately 0.2% since the beginning of the year, underperforming compared to the S&P 500's gain of 0.7% [4] - The stock currently holds a Zacks Rank of 4 (Sell), indicating expectations of underperformance in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.23 on revenues of $1.73 billion, and for the current fiscal year, it is $5.98 on revenues of $5.95 billion [8] - The trend of estimate revisions for TKO Group has been unfavorable leading up to the earnings release, which may impact future stock performance [7] Industry Context - The Film and Television Production and Distribution industry, to which TKO Group belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting a challenging environment for stock performance [9] - The performance of TKO Group's stock may be influenced by the overall outlook for the industry [9]

Core Insights - Warner Bros. Discovery (WBD) shares experienced a significant increase of approximately 173% in 2025, making it the top-performing communications stock in the S&P 500 Index [2][7] - The primary catalyst for this stock performance was the agreement between Warner Bros. and Netflix, where Netflix agreed to acquire most of WBD for an enterprise value of around $82.7 billion [2] - Paramount Skydance has made a competing offer to acquire WBD at an enterprise value of $108.4 billion, which Warner Bros. has advised shareholders to reject [3][6] Group 1 - Warner Bros. Discovery is proceeding with its strategy to sell its streaming, television, and movie production assets to Netflix, while also planning to spin off its cable TV channels into a new entity called Discovery Global [4] - The estimated value that WBD shareholders may receive from the Netflix deal is projected to be between $28 and $33 per share [5] - Paramount's offer of $30 per share for the entirety of WBD is an all-cash proposal and does not depend on the performance of Paramount's stock [5] Group 2 - Warner Bros. has indicated that a deal with Paramount could still be feasible if the company increases its offer, potentially leading to a renewed bidding war that could elevate WBD shares [6] - Netflix is positioned favorably in the acquisition of WBD, as the deal would significantly enhance its market share in TV streaming and provide control over valuable intellectual property [8]

Core Insights - Paramount Skydance Corporation (PSKY) is a newly formed entertainment entity with a market cap of $12.9 billion, resulting from the merger of Paramount Global and Skydance Media, and operates across various segments including streaming, film, television, sports, and gaming [1] Performance Overview - PSKY stock has increased by 48.2% over the past 52 weeks, significantly outperforming the S&P 500 Index, which gained 10.5% during the same period [2] - In the last six months, PSKY's stock rose by 32.1%, while the S&P 500 returned 10.1% [2] - The company also outperformed the Communication Services Select Sector SPDR ETF Fund (XLC), which saw a 13% gain over the past year and an 8.2% return over the last six months [3] Financial Results - For Q3, Paramount Skydance reported total revenue of $4.1 billion and a net loss of $0.01 per share, with streaming revenue increasing approximately 17% year over year [4] - Filmed entertainment revenue grew nearly 30% due to the Skydance integration, while legacy TV/media revenue declined about 12% due to weak advertising and linear viewership [4] - Non-GAAP OIBDA was reported at $655 million, and the company raised its cost-savings target to $3 billion, with over $1.5 billion earmarked for programming investments by 2026 [4] Analyst Expectations - Analysts project a 45.5% year-over-year decline in EPS for the current fiscal year, estimating it to be $0.84 [5] - The consensus rating among 24 analysts is "Hold," with one "Strong Buy," 15 "Holds," one "Moderate Sell," and seven "Strong Sells" [5] Price Target Insights - Citi's Jason Bazinet maintained a "Hold" rating on PSKY with a price target of $20, indicating a potential upside of 27.6% from current trading levels, which are above the mean price target of $14.26 [6]

Core Viewpoint - TKO Group Holdings reported quarterly earnings of $0.5 per share, missing the consensus estimate of $0.55 per share, and showing a decline from $0.53 per share a year ago [1][2] Financial Performance - The company posted revenues of $1.12 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 4.13%, and up from $681.2 million year-over-year [3] - TKO Group has surpassed consensus revenue estimates four times over the last four quarters [3] Stock Performance - TKO Group shares have increased approximately 31.8% since the beginning of the year, outperforming the S&P 500's gain of 15.1% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $1.01 billion, and for the current fiscal year, it is $2.84 on revenues of $4.66 billion [8] - The estimate revisions trend for TKO Group was mixed ahead of the earnings release, which may change following the recent report [7] Industry Context - The Film and Television Production and Distribution industry, to which TKO Group belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, indicating potential challenges ahead [9]

Core Viewpoint - TKO Group Holdings reported quarterly earnings of $1.17 per share, missing the consensus estimate of $1.23 per share, but showing an increase from $0.72 per share a year ago [1][2] Financial Performance - The company posted revenues of $1.31 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 8.78%, compared to $851.2 million in the same quarter last year [3] - TKO Group has surpassed consensus revenue estimates four times over the last four quarters [3] Stock Performance - TKO Group shares have increased approximately 15% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [4] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $1.1 billion, and for the current fiscal year, it is $2.83 on revenues of $4.55 billion [8] - The estimate revisions trend for TKO Group was unfavorable prior to the earnings release, which may impact future stock performance [7] Industry Context - The Film and Television Production and Distribution industry, to which TKO Group belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Company Overview - TKO Group Holdings (TKO) is expected to report a year-over-year increase in earnings due to higher revenues for the quarter ended June 2025, with a consensus outlook indicating a quarterly earnings of $1.23 per share, representing a +70.8% change, and revenues expected to be $1.2 billion, up 41.3% from the previous year [1][3]. Earnings Estimates and Revisions - The consensus EPS estimate has been revised 5.69% higher over the last 30 days, reflecting a reassessment by covering analysts [4]. - The Most Accurate Estimate for TKO Group is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -48.11%, indicating a bearish outlook on the company's earnings prospects [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative Earnings ESP reading indicates the likely deviation of actual earnings from the consensus estimate, with a positive reading being a strong predictor of an earnings beat [9][10]. - TKO Group currently holds a Zacks Rank of 3, making it difficult to predict an earnings beat conclusively [12]. Historical Performance - In the last reported quarter, TKO Group had an earnings surprise of +43.75%, with actual earnings of $0.69 per share compared to an expected $0.48 [13]. - Over the last four quarters, TKO Group has beaten consensus EPS estimates two times [14]. Industry Context - In the Zacks Film and Television Production and Distribution industry, Cinemark Holdings (CNK) is expected to post earnings of $0.78 per share for the same quarter, indicating a year-over-year change of +143.8%, with revenues expected to be $947.59 million, up 29.1% [18][19].

Core Viewpoint - Lionsgate is set to release its financial results for the fiscal 2026 first quarter on August 7, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results for the fiscal 2026 first quarter ended June 30, 2025, will be announced after market close on August 7, 2025 [1] - An analyst and investor conference call will be held on the same day at 5:00 P.M. ET/2:00 P.M. PT to discuss the results [2] Group 2: Company Overview - Lionsgate is recognized as one of the leading standalone, publicly-traded content companies globally [3] - The company encompasses diversified motion picture and television production and distribution businesses, a valuable portfolio of brands and franchises, and a significant film and television library exceeding 20,000 titles [3]

Market Overview - The broader equity markets have shown a steady uptrend as investors remain optimistic despite tariff threats from President Trump on 14 countries, including Japan and South Korea [1] - Investors are hopeful for a mutually beneficial solution to avoid market turmoil as they look forward to a busy earnings season [1][2] Trade Relations - Positive discussions between U.S.-China diplomats regarding trade tariffs and potential peace talks between U.S. officials and Iran have contributed to market stability [2] - Investors are awaiting clarity on interest rate cuts with inflation data expected to be released soon [2] Investment Strategy - Investors are advised to focus on "cash cow" stocks that provide higher returns, emphasizing the importance of attractive efficiency ratios like return on equity (ROE) [3] - High ROE indicates effective reinvestment of cash at a high rate of return, distinguishing profitable companies from less efficient ones [4][5] Stock Screening Parameters - Stocks are screened based on criteria including cash flow greater than $1 billion and ROE exceeding industry averages [6] - Additional metrics include Price/Cash Flow lower than industry average and Return on Assets (ROA) greater than industry average [7] Featured Stocks - **Walt Disney**: Long-term earnings growth expectation of 11.8% with a trailing four-quarter earnings surprise of 16.4% on average, Zacks Rank 2 [8][9] - **TE Connectivity**: Long-term earnings growth expectation of 9.8% with a trailing four-quarter earnings surprise of 3.3% on average, Zacks Rank 2 [10][11] - **Fortinet**: Long-term earnings growth expectation of 13.4% with a trailing four-quarter earnings surprise of 23.8% on average, Zacks Rank 2 [12][13] - **Banco Bilbao**: Long-term earnings growth expectation of 5.5% with a trailing four-quarter earnings surprise of 6.3% on average, Zacks Rank 1 [13][14] - **Colgate-Palmolive**: Long-term earnings growth expectation of 5.2% with a trailing four-quarter earnings surprise of 4% on average, Zacks Rank 2 [14][15]

Group 1 - Zacks Premium offers tools for investors to enhance their stock market confidence and knowledge, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities likely to outperform the market [2][3] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future outlook, analyzing projected earnings and sales for sustainable growth [4] - The Momentum Score identifies trends in stock prices and earnings estimates, aiding investors in timing their stock purchases [5] Group 3 - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, growth potential, and positive momentum [6] - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios [7][8] Group 4 - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9][10] Group 5 - Walt Disney Company reported revenues of $91.4 billion in fiscal 2024 and holds a Zacks Rank of 2 (Buy) with a VGM Score of B [11] - Disney's Growth Style Score of B indicates a forecasted year-over-year earnings growth of 16.3% for the current fiscal year [11] - Recent analyst revisions have increased Disney's earnings estimate for fiscal 2025, with the Zacks Consensus Estimate rising to $5.78 per share [12]

Core Insights - The Zacks Focus List is a curated portfolio of 50 stocks aimed at long-term investors, expected to outperform the market over the next 12 months [3][5] - The Focus List has demonstrated strong past performance, with a cumulative return of 2,519.23% from February 1, 1996, to March 31, 2021, compared to the S&P 500's return of 854.95% [5] - The methodology for selecting stocks in the Focus List relies heavily on earnings estimate revisions, which are critical for predicting future growth and profitability [6][7] Focus List Performance - In 2020, the Focus List gained 13.85% on an annualized basis, outperforming the S&P 500's return of 9.38% [5] - The portfolio's historical performance reinforces its value as a starting point for investors [5] Stock Selection Methodology - Stocks are chosen based on the Zacks Rank, which utilizes earnings estimate revisions to identify potential winners [8][9] - The Zacks Rank is based on four main factors: Agreement, Magnitude, Upside, and Surprise, which are recalculated nightly [9] Case Study: Walt Disney Company - Walt Disney Company reported revenues of $91.4 billion in fiscal 2024 and was added to the Focus List at $85.98 per share, with shares increasing by 29.25% to $111.13 since then [11] - Eight analysts have revised Disney's earnings estimate higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.24 to $5.72, and an average earnings surprise of 16.4% [12]