Paramount Global Prepares for Q1 Earnings Amid Stock Challenges
With a market capitalization of $7.3 billion, New York-based Paramount Global (PARA) is a prominent player in the media and entertainment landscape. The company is recognized for producing a wide range of premium content across television, film, and digital platforms. Paramount’s portfolio features renowned brands like CBS, Paramount Pictures, Nickelodeon, and MTV, alongside streaming services like Paramount+ and Pluto TV. Fiscal Q1 2025 earnings results are expected to be released following the market close on Thursday, May 8.
Analyst Expectations for Upcoming Earnings
Before the earnings announcement, analysts predict that Paramount Global will report an adjusted EPS of $0.35 per share. This figure represents a significant 43.6% decrease from $0.62 per share in the same quarter last year. Of note, the company has exceeded Wall Street’s earnings expectations in three of the previous four quarters, only missing the mark once.
Fiscal Projections and Growth Outlook
Looking ahead to fiscal 2025, analysts anticipate that Paramount will achieve an adjusted EPS of $1.63, reflecting a 5.8% increase from $1.54 in fiscal 2024. The growth trajectory is expected to continue with adjusted EPS projected to rise 16.6% year-over-year to $1.90 in fiscal 2026.
Yearly Stock Performance and Market Position
Over the past 52 weeks, Paramount Global’s stock has declined by 11.6%, significantly trailing the S&P 500 Index’s ($SPX) 7.5% gain and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 15.3% increase during the same timeframe.
Recent Earnings Report Impact
Following its Q4 2024 results, shares of PARA fell by over 2% on February 26. The firm reported an adjusted loss of $0.11 per share, which did not meet expectations. Revenue experienced a year-over-year increase of 5%, amounting to approximately $8 billion; however, this also fell short of forecasts. Additionally, free cash flow saw a steep decline of 87.4%, dropping to $56 million, intensifying concerns among investors. While streaming revenue continues to grow, ongoing declines in traditional television media and advertising revenues reveal ongoing challenges overshadowing the company’s digital advancements.
Cautious Analyst Consensus
Overall, the consensus among analysts regarding Paramount Global’s stock is cautious, reflected in a “Hold” rating. Out of 23 analysts, three recommend a “Strong Buy,” 11 suggest a “Hold,” and nine advise a “Strong Sell.” As of the latest review, PARA trades below the average analyst price target of $11.94.
On the date of publication, Sohini Mondal 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
