Based in New York, Paramount Global (PARA) operates as a global media, streaming, and entertainment company that creates premium content and experiences for audiences worldwide. Valued at $7.82 billion by market cap, the company’s portfolio of consumer brands includes CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, and Pluto TV. The leading media and entertainment company is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Thursday, Aug. 8.
Ahead of the event, analysts expect PARA to report a profit of $0.13 per share on a diluted basis, up 30% from $0.10 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For fiscal 2024, analysts expect PARA to report EPS of $1.32, up 153.9% from $0.52 in fiscal 2023.
PARA stock has significantly underperformed the S&P 500’s ($SPX) 15.2% gains on a YTD basis, with shares down 21.1% during this period. Similarly, it underperformed the S&P 500 Communication Sector SPDR’s (XLC) 15.5% gains over the same time frame.
On Jul. 8, PARA shares closed down more than 5% after it agreed to merge with Skydance Media ending months of negotiation. The deal would see Skydance founder David Ellison take over the reins of the famed Hollywood studio, and the Redstone family would step away from the company. KeyBanc Capital Markets said the stock would likely trade lower in the near term as the weakness reflects “the uncertain EBITDA trajectory of legacy Paramount” and a valuation that “appears high relative to peers.”
On Jun. 25, PARA shares closed down more than 1% after Goldman Sachs reinstated coverage of the stock with a Sell recommendation and a price target of $9.50.
Analysts’ consensus opinion on PARA stock is neutral, with a “Hold” rating overall. Out of 26 analysts covering the stock, four advise a “Strong Buy” rating, one has a “Moderate Buy” rating, nine recommend a “Hold” rating, and 12 give a “Strong Sell.” The average analyst price target for PARA is $12.61, indicating a 7.4% potential upside from the current levels.
More Stock Market News from Barchart
- What to Expect From Henry Schein's Next Quarterly Earnings Report
- What You Need to Know Ahead of Celanese's Earnings Release
- Stocks Plunge on Disappointing Tesla and Google Earnings News and Chip Weakness
- Here's What to Expect From BXP's Next Earnings Report
