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Why Is Paramount Global-B (PARA) Up 5.4% Since Last Earnings Report?
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It has been about a month since the last earnings report for Paramount Global-B (PARA - Free Report) . Shares have added about 5.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Paramount Global-B due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Paramount Global Q1 Earnings Beat, Revenues Rise Y/Y
Paramount Global delivered adjusted earnings of 62 cents per share for the first quarter of 2024, which beat the Zacks Consensus Estimate by 82.35% and increased from 9 cents reported in the year-ago quarter.
Revenues of $7.68 billion beat the Zacks Consensus Estimate by 0.1%. The figure rose 5.8% year over year, owing to an increase in Direct-to-Consumer (DTC), TV Media and Filmed Entertainment revenues.
Adjusted OIBDA surged 80% from the year-ago quarter’s level to $987 million.
Selling, general and administrative expenses decreased 5.2% year over year to $1.66 billion.
Revenues by Type
Advertising revenues (40.3% of total revenues) of $3.09 billion jumped 16.8% year over year. Affiliate revenues (43.7% of total revenues) of $3.35 billion rose 5.6% year over year. Theatrical revenues (2% of total revenues) totaled $153 million in the reported quarter, which climbed 20% year over year. Content-licensing revenues (14% of total revenues) of $1.07 billion plunged 17.5% year over year.
Segment Details
DTC Details
DTC revenues jumped 24% year over year to $1.87 billion, driven by subscriber growth and improvements in engagement and monetization. DTC subscription revenues climbed 22% year over year to $1.35 billion, driven by subscriber growth and increased pricing for Paramount+.
Paramount+ revenues rallied 51%, driven by subscriber growth and ARPU expansion. Paramount+ subscribers reached approximately 71 million, with 3.7 million additions in the quarter. The company witnessed 26% growth in total viewing hours across Paramount+ and Pluto.
DTC advertising revenues increased 31% year over year to $520 million, driven by growth from Pluto TV and Paramount+, including the benefit of Super Bowl LVIII.
The company reported an adjusted OIBDA loss of $286 million, primarily due to an improvement in Paramount+ domestic profitability.
TV Media Details
TV Media revenues rose 1% year over year to $5.23 billion. Advertising revenues increased 14% year over year to $2.58 billion. It reflected a 23-percentage point benefit from CBS’ broadcast of Super Bowl LVIII.
Affiliate and subscription revenues of $1.99 billion declined 3% year over year, primarily due to a fall in subscribers, partially offset by increased pricing. Licensing and other revenues plunged 25% year over year to $651 million, including the impact of 2023 labor strikes on content available for licensing.
TV Media’s adjusted OIBDA increased 11% year over year to $1.44 billion.
Filmed Entertainment Details
Filmed Entertainment revenues rose 3% year over year to $605 million, as Theatrical revenues jumped 20% year over year to $153 million.
Licensing revenues were $451 million, down 1% year over year. Advertising revenues plunged 80% year over year to $1 million.
The company reported an adjusted OIBDA loss of $3 million, narrower than a loss of $99 million in the year-ago period.
Balance Sheet
As of Mar 31, 2024, Paramount Global had cash and cash equivalents of $2.38 billion compared with $2.46 billion as of Dec 31, 2023. Total debt, as of Mar 31, 2024, was $14.6 billion, which remained unchanged sequentially.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -17.78% due to these changes.
VGM Scores
Currently, Paramount Global-B has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Paramount Global-B has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Paramount Global-B (PARA) Up 5.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Paramount Global-B (PARA - Free Report) . Shares have added about 5.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Paramount Global-B due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Paramount Global Q1 Earnings Beat, Revenues Rise Y/Y
Paramount Global delivered adjusted earnings of 62 cents per share for the first quarter of 2024, which beat the Zacks Consensus Estimate by 82.35% and increased from 9 cents reported in the year-ago quarter.
Revenues of $7.68 billion beat the Zacks Consensus Estimate by 0.1%. The figure rose 5.8% year over year, owing to an increase in Direct-to-Consumer (DTC), TV Media and Filmed Entertainment revenues.
Adjusted OIBDA surged 80% from the year-ago quarter’s level to $987 million.
Selling, general and administrative expenses decreased 5.2% year over year to $1.66 billion.
Revenues by Type
Advertising revenues (40.3% of total revenues) of $3.09 billion jumped 16.8% year over year. Affiliate revenues (43.7% of total revenues) of $3.35 billion rose 5.6% year over year. Theatrical revenues (2% of total revenues) totaled $153 million in the reported quarter, which climbed 20% year over year. Content-licensing revenues (14% of total revenues) of $1.07 billion plunged 17.5% year over year.
Segment Details
DTC Details
DTC revenues jumped 24% year over year to $1.87 billion, driven by subscriber growth and improvements in engagement and monetization. DTC subscription revenues climbed 22% year over year to $1.35 billion, driven by subscriber growth and increased pricing for Paramount+.
Paramount+ revenues rallied 51%, driven by subscriber growth and ARPU expansion. Paramount+ subscribers reached approximately 71 million, with 3.7 million additions in the quarter. The company witnessed 26% growth in total viewing hours across Paramount+ and Pluto.
DTC advertising revenues increased 31% year over year to $520 million, driven by growth from Pluto TV and Paramount+, including the benefit of Super Bowl LVIII.
The company reported an adjusted OIBDA loss of $286 million, primarily due to an improvement in Paramount+ domestic profitability.
TV Media Details
TV Media revenues rose 1% year over year to $5.23 billion. Advertising revenues increased 14% year over year to $2.58 billion. It reflected a 23-percentage point benefit from CBS’ broadcast of Super Bowl LVIII.
Affiliate and subscription revenues of $1.99 billion declined 3% year over year, primarily due to a fall in subscribers, partially offset by increased pricing. Licensing and other revenues plunged 25% year over year to $651 million, including the impact of 2023 labor strikes on content available for licensing.
TV Media’s adjusted OIBDA increased 11% year over year to $1.44 billion.
Filmed Entertainment Details
Filmed Entertainment revenues rose 3% year over year to $605 million, as Theatrical revenues jumped 20% year over year to $153 million.
Licensing revenues were $451 million, down 1% year over year. Advertising revenues plunged 80% year over year to $1 million.
The company reported an adjusted OIBDA loss of $3 million, narrower than a loss of $99 million in the year-ago period.
Balance Sheet
As of Mar 31, 2024, Paramount Global had cash and cash equivalents of $2.38 billion compared with $2.46 billion as of Dec 31, 2023. Total debt, as of Mar 31, 2024, was $14.6 billion, which remained unchanged sequentially.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -17.78% due to these changes.
VGM Scores
Currently, Paramount Global-B has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Paramount Global-B has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.