If there is one thing we learned from entertainment giant Paramount’s (PARA) earnings, it is that things are tough, but not impossible, at the company as it prepares for its final combination with Skydance. The picture may be mixed, but its streaming operations are improving, and shares closed up over 4% in Monday’s trading.
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The good news was that it posted another quarter of profit, likely owing more to harsh cost-cutting measures than to sudden spikes in interest. Streaming losses for the first nine months came in at $211 million, which represents almost a billion dollars less lost than we saw from the first nine months of 2023. That sum came in at $1.18 billion. However, streaming did quite well during the quarter, with operating income hitting $49 million, which was much better than expectations of a $161.5 million loss.
The problem, of course, was linear television, which saw another 2% drop against this time last year. People are just not watching straight television—be it cable or broadcast—in the kind of numbers they once did.
Reasons for Hope
The problem is there. But it may not be quite so dire as some believe. At least, not yet. Paramount offered up its “10 Million Viewers Club” list from its CBS programming, where it revealed that eight shows have brought in at least 10 million viewers. This is based on data it brought in from VideoAmp—its connection to Nielsen is still offline, for now—and leading the way were Tracker, Matlock, and FBI.
Is Paramount Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on three Buys, seven Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 2.97% loss in its share price over the past year, the average PARA price target of $12.55 per share implies 8.71% upside potential.
