Media and entertainment conglomerate Paramount Global (NASDAQ:PARA) ticked higher in pre-market trading after its Paramount+ streaming service hit 67.5 million subscribers in Q4, a gain of 4.1 million subscribers from the third quarter. Moreover, the streaming service’s revenues increased by 69% year-over-year while global average revenue per user jumped 31% year-over-year.
However, the company’s adjusted earnings halved year-over-year to $0.04 per diluted share in the fourth quarter. Still, this beat estimates of -$0.01 per share. In addition, Paramount posted revenues of $7.64 billion in the fourth quarter, a decline of 6% year-over-year, which missed consensus estimates of $7.9 billion.
Looking forward, Paramount anticipates an increase in its earnings in FY24. It also expects its Paramount+ streaming service to be profitable in the U.S. by 2025.
Is PARA a Buy or Sell Stock?
Analysts remain bearish about PARA stock with a Moderate Sell consensus rating based on four Buys, three Holds, and eight Sells. Over the past year, PARA has dropped by more than 45%, and the average PARA price target of $14.54 implies an upside potential of 31.5% at current levels. However, it’s worth noting that estimates will likely change following today’s earnings report.
