The full-year results for SKY Network Television Limited (NZSE:SKT) were released last week, making it a good time to revisit its performance. It looks like the results were a bit of a negative overall. While revenues of NZ$767m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.9% to hit NZ$0.34 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for SKY Network Television

Following last week's earnings report, SKY Network Television's six analysts are forecasting 2025 revenues to be NZ$767.9m, approximately in line with the last 12 months. Statutory per share are forecast to be NZ$0.35, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of NZ$790.8m and earnings per share (EPS) of NZ$0.37 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the NZ$2.92 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on SKY Network Television, with the most bullish analyst valuing it at NZ$3.35 and the most bearish at NZ$2.10 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await SKY Network Television shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SKY Network Television's past performance and to peers in the same industry. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2025. Historically, SKY Network Television's top line has shrunk approximately 0.1% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 1.5% annually. So it's pretty clear that, although revenues are improving, SKY Network Television is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for SKY Network Television going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - SKY Network Television has 2 warning signs (and 1 which is significant) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.