Multinational media and entertainment corporation Paramount (NASDAQ:PARA) will be announcing earnings results tomorrow after market close. Here’s what to look for.
Paramount missed analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $6.73 billion, down 5.6% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Paramount a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Paramount’s revenue to grow 6.5% year on year to $8.14 billion, a reversal from the 6.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Paramount has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Paramount’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. FOX delivered year-on-year revenue growth of 19.9%, beating analysts’ expectations by 5%, and AMC Networks reported a revenue decline of 11.7%, falling short of estimates by 2.3%. FOX traded up 5% following the results while AMC Networks was down 15.4%.
Read our full analysis of FOX’s results here and AMC Networks’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the consumer discretionary stocks have shown solid performance, the group has generally underpeformed, with share prices down 3.3% on average over the last month. Paramount is up 4.6% during the same time and is heading into earnings with an average analyst price target of $12.89 (compared to the current share price of $11.65).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
