New York-based Paramount Global (PARA) is a media, streaming, and entertainment company that creates premium content and experiences for its audiences. Valued at a market cap of almost $7.3 billion, the company's portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, and Comedy Central, to name a few. It is expected to announce its fiscal Q4 earnings results on Wednesday, Feb. 26.
Ahead of this event, analysts expect the communication services company to report a profit of $0.10 per share, up a stunning 150% from just $0.04 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's bottom-line estimates in the last four quarters. Its earnings of $0.49 per share in the previous quarter outpaced the consensus estimates by a significant margin of 104.2%.
For fiscal 2024, analysts expect Paramount Global to report an EPS of $1.78, up 242.3% from a profit of $0.52 in fiscal 2024. However, in fiscal 2025, PARA’s EPS is expected to decline 13.5% year-over-year to $1.54.
Shares of PARA have dropped 20.5% over the past 52 weeks, significantly underperforming both the S&P 500 Index's ($SPX) 25.8% return and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 31.4% rise over the same time frame.
On Nov. 8, shares of PARA plunged 4% after its Q3 earnings release as the company’s revenue of $6.7 billion missed Wall Street’s expectations by 3.4% and declined 5.6% from the year-ago quarter. Softness in TV Media and Filmed Entertainment revenues resulted in its top miss. On the brighter side, the company’s selling, general, and administrative expenses decreased 11.8% year-over-year and led to a notable 63% annual growth in its adjusted EPS to $0.49. The bottom-line figure crushed the consensus estimates by a whopping 104.2%.
Wall Street analysts are cautious about PARA’s stock, with a "Hold" rating overall. Among 24 analysts covering the stock, four recommend "Strong Buy," 10 indicate “Hold,” and ten “Strong Sell.”
The mean price target for Paramount Global is $12.03, which indicates a modest 10.7% potential upside from the current levels.
On the date of publication, Neharika Jain 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.
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