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Paramount Global-B (PARA) Up 6.6% Since Last Earnings Report: Can It Continue?
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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 6.6% 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 its most recent earnings report in order to get a better handle on the important drivers.
Paramount Global Q4 Earnings Beat, Revenues Miss
Paramount Global delivered adjusted earnings of 4 cents per share for the fourth quarter of 2023, which declined 50% year over year. The figure beat the Zacks Consensus Estimate of a loss of 5 cents.
Revenues of $7.64 billion missed the Zacks Consensus Estimate by 1.88%. The figure decreased 6% year over year, owing to a rise in Direct-to-Consumer revenues, partially offset by a decline in TV Media and Filmed Entertainment revenues.
Adjusted OIBDA decreased 15% from the year-ago quarter’s level to $520 million.
Selling, general and administrative expenses decreased 3% year over year to $1.97 billion.
Revenues by Type
Affiliate revenues (43.8% of total revenues) of $3.34 billion increased 12.9% year over year. Theatrical revenues (1% of total revenues) totaled $78 million in the reported quarter, which decreased 19.6% year over year.
Advertising revenues (36.8% of total revenues) of $2.81 billion decreased 10.6% year over year. Content-licensing revenues (18.4% of total revenues) of $1.41 billion plunged 27% year over year.
Segment Details
Direct-to-Consumer (DTC) Details
DTC revenues jumped 33.9% year over year to $1.87 billion, driven by subscriber growth and improvements in engagement and monetization. DTC subscription revenues soared 43.1% year over year to $1.34 billion, driven by pricing increases for Paramount+ and revenues from pay-per-view events.
Paramount+ revenues surged 68.7%, driven by subscriber growth and increased advertising revenues. Paramount+ subscribers reached approximately 67.5 million, with 4.1 million additions in the quarter. The company witnessed 27% growth in total viewing hours across Paramount+ and Pluto.
DTC advertising revenues increased 14.3% year over year to $526 million, driven by higher impressions for Paramount+ and Pluto TV.
The company reported an adjusted OIBDA loss of $490 million, narrower than a loss of $575 million in the year-ago quarter as higher revenues more than offset incremental costs to support the growth of Paramount+.
TV Media Details
TV Media revenues decreased 12.2% year over year to $5.17 billion, which reflected a decline in advertising revenues.
Advertising revenues decreased 14.9% year over year to $2.29 billion, reflecting continued softness in the global advertising market and lower political advertising.
Affiliate and subscription revenues of $2 billion declined 1% year over year. Licensing and other revenues decreased 25.1% year over year to $882 million, primarily due to lower revenues from original content produced for third parties. Content available for licensing was impacted by temporary production shutdowns as a result of labor strikes.
TV Media’s adjusted OIBDA decreased 11.9% year over year to $1.14 billion, due to the decline in advertising revenues, partially offset by lower costs for content and marketing.
Filmed Entertainment Details
Filmed Entertainment revenues declined 30.9% year over year to $647 million, as Theatrical revenues decreased 19.6% year over year to $78 million.
Licensing revenues were $566 million, down 32.1% year over year. Advertising revenues plunged 50% year over year to $3 million.
The company reported an adjusted OIBDA of $24 million compared with a positive adjusted OIBDA of $87 million in the year-ago period.
Balance Sheet
As of Dec 31, 2023, Paramount had cash and cash equivalents of $2.46 billion compared with $1.8 billion as of Sep 30.
Total debt, as of Dec 31, 2023, was $14.6 billion compared with a total debt of $15.66 billion as of Sep 30.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -10.69% due to these changes.
VGM Scores
At this time, Paramount Global-B has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile 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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Paramount Global-B (PARA) Up 6.6% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Paramount Global-B (PARA - Free Report) . Shares have added about 6.6% 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 its most recent earnings report in order to get a better handle on the important drivers.
Paramount Global Q4 Earnings Beat, Revenues Miss
Paramount Global delivered adjusted earnings of 4 cents per share for the fourth quarter of 2023, which declined 50% year over year. The figure beat the Zacks Consensus Estimate of a loss of 5 cents.
Revenues of $7.64 billion missed the Zacks Consensus Estimate by 1.88%. The figure decreased 6% year over year, owing to a rise in Direct-to-Consumer revenues, partially offset by a decline in TV Media and Filmed Entertainment revenues.
Adjusted OIBDA decreased 15% from the year-ago quarter’s level to $520 million.
Selling, general and administrative expenses decreased 3% year over year to $1.97 billion.
Revenues by Type
Affiliate revenues (43.8% of total revenues) of $3.34 billion increased 12.9% year over year. Theatrical revenues (1% of total revenues) totaled $78 million in the reported quarter, which decreased 19.6% year over year.
Advertising revenues (36.8% of total revenues) of $2.81 billion decreased 10.6% year over year. Content-licensing revenues (18.4% of total revenues) of $1.41 billion plunged 27% year over year.
Segment Details
Direct-to-Consumer (DTC) Details
DTC revenues jumped 33.9% year over year to $1.87 billion, driven by subscriber growth and improvements in engagement and monetization. DTC subscription revenues soared 43.1% year over year to $1.34 billion, driven by pricing increases for Paramount+ and revenues from pay-per-view events.
Paramount+ revenues surged 68.7%, driven by subscriber growth and increased advertising revenues. Paramount+ subscribers reached approximately 67.5 million, with 4.1 million additions in the quarter. The company witnessed 27% growth in total viewing hours across Paramount+ and Pluto.
DTC advertising revenues increased 14.3% year over year to $526 million, driven by higher impressions for Paramount+ and Pluto TV.
The company reported an adjusted OIBDA loss of $490 million, narrower than a loss of $575 million in the year-ago quarter as higher revenues more than offset incremental costs to support the growth of Paramount+.
TV Media Details
TV Media revenues decreased 12.2% year over year to $5.17 billion, which reflected a decline in advertising revenues.
Advertising revenues decreased 14.9% year over year to $2.29 billion, reflecting continued softness in the global advertising market and lower political advertising.
Affiliate and subscription revenues of $2 billion declined 1% year over year. Licensing and other revenues decreased 25.1% year over year to $882 million, primarily due to lower revenues from original content produced for third parties. Content available for licensing was impacted by temporary production shutdowns as a result of labor strikes.
TV Media’s adjusted OIBDA decreased 11.9% year over year to $1.14 billion, due to the decline in advertising revenues, partially offset by lower costs for content and marketing.
Filmed Entertainment Details
Filmed Entertainment revenues declined 30.9% year over year to $647 million, as Theatrical revenues decreased 19.6% year over year to $78 million.
Licensing revenues were $566 million, down 32.1% year over year. Advertising revenues plunged 50% year over year to $3 million.
The company reported an adjusted OIBDA of $24 million compared with a positive adjusted OIBDA of $87 million in the year-ago period.
Balance Sheet
As of Dec 31, 2023, Paramount had cash and cash equivalents of $2.46 billion compared with $1.8 billion as of Sep 30.
Total debt, as of Dec 31, 2023, was $14.6 billion compared with a total debt of $15.66 billion as of Sep 30.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -10.69% due to these changes.
VGM Scores
At this time, Paramount Global-B has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile 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.