Paramount Global Reports Mixed Q4 Results Amid Streaming Growth

Paramount Global experiences a challenging quarter, as EPS misses estimates significantly. However, revenue improves, driven by strong streaming growth. Investors face concerns over traditional media while the company shows potential in digital expansion.

Date: 27-02-2025

AI Rating: 4

Earnings Per Share (EPS): Paramount Global reported an adjusted diluted EPS of -$0.11, which is significantly below the analyst estimate of $0.13, resulting in a substantial miss of $0.24. This performance marks a significant 184.6% miss, which can raise concerns among investors regarding the company's immediate profitability prospects.

Revenue Growth: The company achieved total revenue of $7.98 billion, which, although fell short of the predicted $8.10 billion, represents a 5% improvement from the previous year’s revenue of $7.64 billion. This revenue growth indicates positive movement within the company, especially in light of a challenging market environment.

Free Cash Flow (FCF): There was a notable decline in free cash flow, which fell to $56 million from $443 million in the prior year, reflecting a substantial 87.4% drop. This decline in cash flow could impact the company’s ability to invest in opportunities or manage debts moving forward.

While Paramount Global is making strides in its streaming segment, including achieving a 16% revenue increase for Paramount+, it is evident that the traditional media sector is still struggling. The revenue drop in TV Media and advertising revenue highlights the struggles of adjusting to digital trends. In light of the mixed financial performance and the notable challenges faced, investors may have mixed feelings about the company's short-term outlook.

Stocks: PARA