Paramount Global (PARA), headquartered in New York City, is a global media and entertainment company delivering content to audiences worldwide. With a market cap of $6.87 billion, Paramount Global creates, distributes, and monetizes diverse content across television, streaming, and film platforms. The company is set to announce its Q3 earnings before the market opens on Friday, Nov. 8.
Ahead of the event, analysts expect PARA to report a profit of $0.19 per share, down 36.7% from $0.30 in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in the last four quarters.
Its adjusted earnings of $0.54 per share for the last quarter surpassed the consensus estimate by 285.7%. Streaming division profit drove Paramount’s earnings beat despite revenue declines from lower TV licensing and reduced cable subscriptions.
For fiscal 2024, analysts expect PARA to report an EPS of $1.58, up 203.9% from $0.52 in fiscal 2023.
PARA stock is down 30.6% YTD, significantly underperforming the broader S&P 500 Index's ($SPX) 22.7% gains and the Communication Services Select Sector SPDR ETF Fund's (XLC) 25.2% gain over the same time frame.
Paramount Global has underperformed this year, struggling under the weight of declining linear TV viewership and a streaming business that just hasn’t hit its stride. The collapse of merger talks with Skydance Media has further dragged down its stock.
However, on Aug. 8, Paramount Global shares surged over 5% in pre-market trading because of its stronger-than-expected Q2 adjusted EPS and revealing plans to reduce its U.S. workforce by 15%.
The consensus opinion on PARA stock is cautious, with an overall “Hold” rating. Of 26 analysts covering the stock, four recommend a “Strong Buy” rating, 11 suggest a “Hold,” and 11 advise “Strong Sell.”
PARA's average analyst price target is $11.81, suggesting a potential upside of 15% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
