Paramount Global (PARA) to Report Q3 Earnings: What's in Store?

Paramount Global PARA is set to report third-quarter 2022 earnings on Nov 2.

For the quarter, the Zacks Consensus Estimate for earnings has moved northward by 4.9% to 43 cents per share in the past 30 days. The figure indicates a 43.4% plunge from the year-ago quarter’s reported figure.

The consensus mark for revenues is pegged at $7.05 billion, calling for a 6.64% increase from the year-ago quarter’s reported figure.

The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, missed once and matched the same on the other occasion. Paramount Global has a trailing four-quarter negative earnings surprise of 0.17%, on average.

Let’s see how things have shaped up for this announcement.

Paramount Global Price and EPS Surprise

Paramount Global Price and EPS Surprise

  

Paramount Global price-eps-surprise | Paramount Global Quote

Factors to Consider

Paramount Global’s third-quarter 2022 performance is expected to have benefited from a steady cable network portfolio. The growing traction of Showtime, BET, Comedy Central and Nickelodeon are expected to have boosted the top line.

An expanding content catalog of live sporting events and a solid portfolio of streaming services, including CBS All Access, Showtime OTT, Pluto TV, Noggin and BET+, are expected to have boosted viewership and ad revenues in the third quarter.

Global streaming subscribers rose to nearly 64 million, which included the addition of 5.2 million new subscribers and the removal of 3.9 million Russian subscribers in the second quarter. Subscriber additions were driven by Paramount+, which added 4.9 million subscribers in the second quarter, bringing Paramount+ total subscribers to almost 43 million.

The launch of Paramount+ in Italy in the to-be-reported quarter is expected to have aided global subscriber growth.

In August, Paramount Global and Roku ROKU announced the availability of Paramount+ as a Premium Subscription within The Roku Channel, making Paramount+ critically acclaimed originals, hit movies, a world-class library of popular series, 24/7 news and marquee sports, accessible directly to consumers within The Roku Channel.

Pluto TV gained immense popularity with more than 250 live events, linear channels and thousands of hours of on-demand content. Pluto TV partners with more than 175 content providers, including media houses, film and TV studios that help it produce various content.

In the second quarter of 2022, Pluto TV’s global monthly active users (MAUs) increased to nearly 70 million. The trend is likely to have continued in the to-be-reported quarter.

Pluto TV expanded its international presence by launching in the Nordics in partnership with Viaplay Group and announced a collaboration with Corus in Canada. The service unveiled a vast programming lineup that features more than 70 unique and locally curated channels, which are now live in each country. This is expected to have boosted the streamer’s global MAUs in the to-be-reported quarter.

Advertisers, however, continue to face supply-chain disruptions and labor shortages, and many others are contending with rising costs amid record inflation, which have led to cutbacks in spending on advertising. This is expected to have hampered ad revenue growth in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Paramount Global has an Earnings ESP of +2.15% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few other stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Fortinet FTNT has an Earnings ESP of +0.92% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fortinet is set to report third-quarter 2022 results on Nov 2. The Zacks Consensus Estimate for FTNT’s earnings is pegged at 27 cents per share, suggesting an increase of 35% from the prior-year period’s reported figure.

The Trade Desk TTD has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.

The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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