Paramount Global PARA is set to report third-quarter 2024 earnings on Nov. 8.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 24 cents per share, indicating a 33.34% increase in the past 30 days. The figure indicates a decline of 20% from the year-ago quarter’s reported figure.

The consensus mark for revenues is pegged at $6.92 billion, indicating a 3% decline from the year-ago quarter’s reported figure.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 205.77%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Let’s see how things have shaped up for this announcement.

Paramount Global Price and EPS Surprise

Paramount Global price-eps-surprise | Paramount Global Quote

Factors to Consider for PARA

Paramount Global’s third-quarter results are likely to reflect a mixed performance, driven by the company's expanding clientele and growing streaming services balanced against potential headwinds in the advertising market and dullness in Content-licensing revenues.

PARA’s revenues are expected to have benefited from its expanding clientele. PARA’s renewal of the Charter Communication CHTR partnership, along with agreements with CBS Television Network, is likely to have contributed positively to the top line in the third quarter of 2024. Further, PARA’s diverse portfolio of streaming services, which includes Showtime OTT, Pluto TV, BET+, Comedy Central, Nickelodeon, MTV and Paramount Pictures, is expected to have positively contributed to its viewership. 

PARA’s top line is likely to benefit from Charter’s ad-supported tier being made available in Paramount+ to cable subscribers for free by enabling a transition between linear to streaming. PARA’s DTC segment’s performance is expected to have boosted its top line in the to-be-reported quarter. While Paramount+ continues to lead the industry in sign-ups attributed to popular TV series and blockbuster movies, Pluto remains the most widely distributed FAST service globally and is expanding its global footprint. Pluto delivered 3.7 billion hours for the first six months over 35 markets in partnership with more than 425 media companies. This trend is likely to continue in the third quarter of 2024. 

Paramount Global's streaming segment has shown robust growth in recent quarters. In the second quarter, Paramount+ ARPU increased 26% year over year, whereas revenues from Paramount+ increased 45% year over year to $1.45 billion. Paramount+ subscribers increased 7.7 million year over year to 68 million in the same quarter. The Zacks Consensus Estimate suggests a slight increase to 71 million global Paramount subscribers. It remains to be seen if this upward trajectory has continued in the third quarter. 

Paramount Global’s expanding content offering is expected to have driven customer momentum in the to-be-reported quarter. Further, live sport offering and contribution from political spend is expected to be reflected in the third quarter’s performance. PARA’s CBS Sports provides cross-platform sports content, including college football, THE NFL, PGA Championship and PGA TOUR, CBS SPORTS SPECTACULAR, as well as 24-hour cable service.

However, the advertising landscape presents some challenges amid persisting inflation, leading to reduced ad spending. Further, TV Media affiliates are likely to suffer in the third quarter of 2024 due to Showtime Sports exit.

What Our Model Says for PARA

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. 

Paramount Global has an Earnings ESP of +1.98% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some other stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this season.

Shopify SHOP has an Earnings ESP of +5.78% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
 
Shopify’s shares have gained 2.2% year to date. SHOP is set to report its third-quarter 2024 results on Nov. 12.
 
FLYWIRE CORP FLYW has an Earnings ESP of +54.55% and flaunts a Zacks Rank of #2 at present.
 
Flywire Corp’s shares have lost 23% year to date. FLYW is set to report its third-quarter 2024 results on Nov. 7.

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