Paramount Global Set to Report Q4 Earnings Amid Mixed Market Performance
Paramount Global (PARA), a leading media and entertainment company based in New York, is preparing to release its fiscal Q4 earnings results on Wednesday, Feb. 26. With a market cap nearing $7.3 billion, Paramount’s collection of renowned brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, and Comedy Central among others.
Analysts Anticipate Strong Earnings Growth
Analysts forecast a profit of $0.10 per share for the upcoming quarter, which marks a remarkable 150% increase from last year’s $0.04 per share. Paramount has demonstrated reliability in outpacing Wall Street estimates consistently for the past four quarters. In the previous quarter, the company earned $0.49 per share, exceeding consensus by an impressive 104.2%.
Future Projections Show Mixed Results
Looking to fiscal 2024, experts predict Paramount Global will report earnings per share (EPS) of $1.78, which would reflect a 242.3% jump from $0.52 in fiscal 2023. However, expectations for fiscal 2025 suggest a potential decline of 13.5% year-over-year, bringing the EPS down to $1.54.
Stock Performance Under Scrutiny
Over the past year, shares of Paramount Global have dropped 20.5%, significantly lagging behind the S&P 500 Index’s gain of 25.8% and the Communication Services Select Sector SPDR ETF Fund’s 31.4% increase. On Nov. 8, after reporting third-quarter results, shares fell by 4%. Revenue for the quarter stood at $6.7 billion, which was 3.4% below analysts’ expectations and down 5.6% compared to the previous year. Notably, weaknesses were evident in TV Media and Filmed Entertainment revenues.
Despite the revenue miss, there were positive developments. Paramount managed to reduce selling, general, and administrative expenses by 11.8% year-over-year, leading to a significant 63% annual increase in adjusted EPS to $0.49, far exceeding consensus estimates.
Analysts Divided on Stock Ratings
Current sentiment on Wall Street reflects caution regarding Paramount’s stock, with an overall “Hold” rating. Out of 24 analysts covering the company, four recommend a “Strong Buy,” ten suggest “Hold,” and another ten classify it as a “Strong Sell.”
The average price target for Paramount Global stands at $12.03, indicating a potential upside of 10.7% from current levels.
On the date of publication, Neharika Jain did not hold any positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are intended for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
