PARA Earnings Prediction
The chart below shows how PARA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PARA sees a +9.42% change in stock price 10 days leading up to the earnings, and a +3.01% change 10 days following the report. On the earnings day itself, the stock moves by -3.31%. This data can give you a slight idea of what to expect for the next quarter's release.
PARA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
6.73B
-5.64%
-1.20%
Gross Margin
34.07%
3.56%
-1.02%
Operating Margin
11.32%
32.09%
0.71%
Net Margin
0.24%
-93.44%
-100.30%
EPS
0.00
-100.00%
-100.00%
No Data Available
PARA Earnings Analysis
Paramount Global Class B Common Stock Corporation (PARA.O) Earnings Conference Call
Positive
Subscriber Increase in Q3: 1. Subscriber Growth: Paramount+ added 3.5 million subscribers in Q3 2024, reaching a total of 72 million subscribers, driven by new originals and the return of NFL and college football.
Paramount+ Revenue Surge: 2. Revenue Growth: Paramount+ revenue grew by 27% year-over-year, contributing to the overall strong performance of the direct-to-consumer segment.
Direct-to-Consumer Profitability: 3. D2C Profitability: The direct-to-consumer segment achieved profitability for the second consecutive quarter, with adjusted OIBDA improving by over $1 billion over the past four quarters.
Advertising Revenue Surge: 4. Advertising Revenue Increase: Total company advertising grew by 2%, with direct-to-consumer advertising experiencing an 18% increase, reflecting strong demand and improved pricing.
Annual Savings Target: 5. Cost Management: Paramount Global is on track to achieve $500 million in annual run rate savings, having executed 90% of the planned workforce reductions to streamline operations.
Negative
Revenue Decline Analysis: 1. Decline in Affiliate and Subscription Revenue: Affiliate and subscription revenue decreased by 1% in Q3, impacted by the absence of Showtime pay-per-view events, which reduced the growth rate by 270 basis points.
Decline in Licensing Revenue: 2. Drop in Licensing Revenue: Licensing and other revenue fell by 9% in the quarter, primarily due to lower volumes in the secondary market and decreased home entertainment revenues, with expectations for a full-year decline relative to 2023.
Negative Cash Flow Outlook: 3. Negative Free Cash Flow Forecast: Free cash flow is projected to be negative in Q4 due to timing of content spending and approximately $150 million in cash restructuring payments, despite a positive $214 million in Q3.
TV Advertising Revenue Decline: 4. Decline in TV Media Advertising Revenue: TV Media advertising revenue decreased by 2% year-over-year, despite improvements from the return of football and higher political spending, indicating ongoing challenges in the segment.
ARPU Growth Struggles: 5. ARPU Growth Challenges: Global ARPU for Paramount+ grew by only 11% in the quarter, hindered by the lapping of last year's price increase and a shift towards lower-priced subscription tiers, affecting overall revenue growth.
PARA FAQs
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PARA Earning Call Sentiment
Paramount Global (PARA) Q3 2024 Earnings Call Transcript
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00:00
00:00
PARA.O
0.05%Positive
The earnings call reveals mixed signals: strong adjusted OIBDA growth and D2C subscription growth, but concerns about negative free cash flow, regulatory risks, and declining licensing revenue. The Q&A section highlighted management's strategic focus but also revealed some uncertainties, particularly in international markets and partnerships. The expected domestic profitability of Paramount+ in 2025 and cost-saving initiatives are positive, yet the market might be wary due to economic pressures and content production risks. Without a market cap, the overall sentiment suggests a neutral stock price movement.
