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.
