Core Insights - Paramount Global's third-quarter 2024 financial results show mixed performance across segments, with total revenue at 6.7billion,a6337 million [1] - Adjusted OIBDA increased by 20% to 858million,exceedingexpectationsby341.9 billion, driven by a 26% revenue increase from Paramount+, which added 3.5 million subscribers, totaling 71.9 million [3] Revenue Breakdown - Total revenue reached 6.7billion,down64.3 billion, with ad revenue dropping 2% year-over-year [1] - Filmed Entertainment revenue dropped 34% year-over-year to 590million,attributedtothetimingofreleases[5]DTCSegmentPerformance−DTCadvertisingrevenuerose1849 million profit from a loss of 238millioninQ32023[3]Cost−CuttingMeasures−Paramountaimsfor500 million in annual cost reductions, primarily through workforce cuts and process streamlining, with 90% of these reductions completed by the end of Q3 [6] - These measures are seen as crucial for managing profitability challenges amid shifting revenue streams and high content production costs [6] Analyst Outlook - Needham analyst Laura Martin reiterated a Hold rating on Paramount, expressing caution regarding the company's ability to return to consistent revenue growth [2] - Martin noted potential for growth as streaming becomes a larger revenue share, but remains cautious until sustained growth is evidenced [7] Stock Performance and Projections - Paramount stock rose 2.85% to 11.39[8]−Fiscal2024revenueisprojectedat29.5 billion (down 1% year-over-year) with adjusted EPS at 1.89,whilefiscal2025revenueisforecastedat29.7 billion and EPS at 1.40[8]−Initialprojectionsforfiscal2026suggestrevenueof30.1 billion and adjusted EPS of $1.73, indicating a gradual return to growth [8]
Paramount (PGRE) Benzinga·2024-11-11 18:05