Entertainment giant Paramount Global (NASDAQ:PARA) was slightly up in after-hours trading despite reporting revenue that fell slightly short of market expectations at $7.685 billion (analysts estimated $7.74 billion). Still, the company’s Direct-to-Consumer segment performed well, which saw a 24% revenue increase to $1.879 billion.
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Furthermore, the Paramount+ streaming service grew its revenue by an impressive 51% year-over-year. It also added 3.7 million new subscribers this quarter and brought its total to over 71 million.
In addition, the company’s operating income before depreciation and amortization surged by 80% to $987 million, while earnings per share came in at $0.62. This topped analyst predictions of $0.35.
Despite these strong financials, CEO Bob Bakish stepped down from his role and was replaced by an interim “Office of the CEO” committee amid ongoing merger discussions with Skydance Media.
Is PARA a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on six Buys, eight Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After a 47% loss in its share price over the past year, the average PARA price target of $13.29 per share implies 8.58% upside potential.
