Investors and traders are eagerly awaiting the third-quarter 2023 earnings announcement from Paramount Global (PARA), scheduled for November 2.
The Zacks Consensus Estimate for earnings in the quarter is 9 cents per share, which has decreased by 10% over the past 30 days. This indicates a significant 76.9% drop from the same quarter last year.
On the revenue front, analysts expect PARA to report $7.17 billion, reflecting a 3.66% increase from the previous year’s quarter.
In the last four quarters, Paramount Global has beaten the Zacks Consensus Estimate once and missed thrice. It has an average earnings surprise of 252.54%.
Paramount Global Price and Earnings Surprise
Paramount Global Price and EPS Surprise | Paramount Global Quote
Factors to Consider
Paramount Global’s third-quarter revenues are expected to benefit from their expanding content catalog of live sporting events and a strong portfolio of streaming services, including CBS All Access, Showtime OTT, Pluto TV, Noggin, and BET+.
The growing popularity of Showtime, BET, Comedy Central, and Nickelodeon is expected to drive the company’s top line.
Paramount+ reached a significant milestone with 61 million subscribers in the second quarter, and this growth trend is expected to continue in the upcoming quarter. The estimated number of global subscribers for Paramount+ is 63 million.
In the second quarter, PARA entered into a partnership with VIDAA to bring Paramount+ to smart TVs powered by VIDAA in Canada and Latin America. This collaboration is likely to boost Paramount+ subscriber growth in the third quarter.
Pluto TV has gained immense popularity with its extensive offering of live events, linear channels, and on-demand content. Partnering with over 175 content providers, Pluto TV continues to produce various engaging content.
In the second quarter, Pluto TV’s total global viewing hours grew by 35% compared to the previous year. This growth trend is expected to continue in the third quarter.
However, advertisers have been facing supply-chain disruptions, labor shortages, and rising costs due to record inflation. These challenges may have hampered ad revenue growth for PARAMOUNT in the quarter.
What Our Model Says
Although Paramount Global has a positive Earnings ESP of +7.29%, it currently carries a Zacks Rank #5 (Strong Sell). This indicates that an earnings beat is unlikely. You can stay updated with the latest stocks to buy or sell by using our Earnings ESP Filter.
Stocks to Consider
According to the Zacks model, NVIDIA Corporation (NVDA), Palantir Technologies (PLTR), and Synaptics (SYNA) have the potential to beat earnings estimates in their upcoming releases.
NVIDIA, with a Zacks Rank #1, has an Earnings ESP of +6.93% and is scheduled to report third-quarter fiscal 2023 results on November 21.
Palantir, with a Zacks Rank #2, has an Earnings ESP of +4.35% and is scheduled to report third-quarter 2023 results on November 2.
Synaptics, with a Zacks Rank #2, has an Earnings ESP of +3.54% and is scheduled to report first-quarter fiscal 2024 results on November 9.
For the complete list of today’s Zacks #1 Rank stocks, click here.
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