Global media company Paramount Global (PARA) will release its Q3 financial results on November 8. Wall Street analysts expect the company to report earnings per share of $0.24, reflecting a 25% year-over-year decline. Also, revenue is expected to decrease by 2.7% year-over-year, reaching $6.94 billion, according to data from the TipRanks Forecast page.
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Amid recent turmoil, including a competing takeover bid from Skydance Media, Paramount Global has seen its share price decline by 21.95% year-to-date and 10% over the past year.
Encouraging Website Traffic Trend
Although analysts expect PARA’s earnings and revenue to dip year-over-year, the company’s website traffic data suggests potential revenue growth in Q3.
It’s important to note that TipRanks’ Website Traffic Tool provides valuable insights by tracking domain performance over time, helping to estimate a company’s earnings potential. For PARA, the tool reveals a 6.61% year-over-year increase in visits to paramountplus.com in Q3.
Key Takeaways from TipRanks’ Bulls & Bears Tool
As we approach Q3, bullish analysts remain positive about Paramount Global, citing strong growth in digital ad revenue and adjusted operating income. According to TipRanks’ Bulls Say, Bears Say tool, these analysts are encouraged by the company’s efforts to simplify its operations and possibly sell non-essential assets to drive continued growth.
Conversely, bearish analysts express concerns over PARA’s declining revenue estimates due to lower licensing and theatrical income. Further, uncertainty surrounding PARA’s financial performance is heightened by the pending acquisition or merger and the transition to new management, creating potential risks for the company in the short term.
Options Traders Anticipate a Minor Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 3.34% move in either direction.
Is Paramount Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on three Buys, six Holds, and four Sells assigned in the past three months, as indicated by the graphic below. The average PARA price target of $12.67 per share implies 11.34% upside potential.
