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PARA Earnings: Paramount Global Reports Mixed Q3 Results
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PARA Earnings: Paramount Global Reports Mixed Q3 Results

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Paramount Global reported mixed results in the third quarter.

Paramount Global (PARA) reported mixed results in the third quarter. The media and entertainment conglomerate’s adjusted earnings increased by 63% to $0.49 per share, exceeding consensus estimates of $0.24 per share.

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PARA’s Revenues Dragged Down by TV Media Business Segment

However, the company’s revenues declined by 6% year-over-year to $6.73 billion in the third quarter. This fell short of Street estimates of $6.9 billion.

In the third quarter, Paramount’s TV media business, which includes channels like CBS and MTV, faced a 6% year-over-year decline in revenues to $4.3 billion. This drop was driven by several challenges, including lower advertising spending, a drop in subscriber numbers, and the absence of high-profile pay-per-view boxing events.

Paramount’s Streaming Business Does Remarkably Well

Meanwhile, Paramount’s streaming unit, which includes the Paramount+ and PlutoTV platforms, showed encouraging results during the quarter. PARA’s streaming services benefitted from price hikes for Paramount+ and strong sports content such as NFL games.

In addition, Paramount+ added 3.5 million subscribers in the third quarter, a substantial recovery after the previous quarter’s loss of 2.8 million subscribers. This reversal suggests that Paramount’s investments in content, particularly sports and hit series, are resonating with audiences.

Is PARA a Buy or Sell?

Analysts remain sidelined about PARA stock, with a Hold consensus rating based on three Buys, seven Holds, and four Sells. Year-to-date, PARA has declined by more than 15%, and the average PARA price target of $12.55 implies an upside potential of 8.8% from current levels. These analyst ratings are likely to change following PARA’s results today.

See more PARA analyst ratings

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