Core Viewpoint - Paramount Global reported a quarterly loss of $0.11 per share, significantly missing the Zacks Consensus Estimate of $0.60, marking an earnings surprise of -118.33% [1] - The company achieved revenues of $7.98 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 1.28% and showing a year-over-year increase from $7.64 billion [2] Financial Performance - The company has surpassed consensus EPS estimates three times over the last four quarters, but has only topped revenue estimates once in the same period [2] - The current consensus EPS estimate for the upcoming quarter is $1.10 on revenues of $7.18 billion, and for the current fiscal year, it is $3.48 on revenues of $28.99 billion [7] Market Position - Paramount Global shares have increased by approximately 2.2% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The Zacks Rank for Paramount Global is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Outlook - The Media Conglomerates industry, to which Paramount Global belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Paramount Global reported weaker-than-expected earnings, highlighting the challenges of its transition to streaming amid declining traditional media segments.Paramount Global (PARA -2.44%), a media company known for its diverse entertainment content, released its earnings for the fourth quarter of 2024 on Feb. 26, 2025. The results spotlight the company’s ongoing struggle to meet financial objectives despite notable progress in its streaming services. For the quarter, diluted earnings per share (EPS) signif ...

Core Insights - Paramount Global-B reported revenue of $7.98 billion for the quarter ended December 2024, a year-over-year increase of 4.5%, but fell short of the Zacks Consensus Estimate of $8.14 billion by 1.94% [1] - The company experienced an EPS of -$0.11, a significant decline compared to $0.04 a year ago, resulting in an EPS surprise of -210.00% against the consensus estimate of $0.10 [1] Financial Performance Metrics - Global Paramount Subscribers reached 77.5 million, exceeding the estimated 74.57 million [4] - TV Media revenues were reported at $4.98 billion, below the estimated $5.17 billion, reflecting a year-over-year decrease of 3.7% [4] - Filmed Entertainment revenues increased to $1.08 billion, surpassing the estimated $979.71 million, marking a substantial year-over-year growth of 67.1% [4] - Direct-to-Consumer revenues matched the average estimate of $2.01 billion, showing a year-over-year increase of 7.7% [4] - Direct-to-Consumer Advertising revenues were $574 million, slightly below the estimated $590.84 million, with a year-over-year increase of 9.1% [4] - Revenues from Eliminations were reported at -$89 million, worse than the estimated -$53 million, representing a year-over-year change of 93.5% [4] - Filmed Entertainment Licensing and Other revenues reached $661 million, exceeding the estimated $606.96 million, with a year-over-year increase of 16.8% [4] - TV Media Advertising revenues were $2.20 billion, below the estimated $2.23 billion, reflecting a year-over-year decrease of 3.7% [4] - TV Media Affiliate and Subscription revenues were reported at $1.87 billion, matching the average estimate, with a year-over-year decline of 6.7% [4] - TV Media Licensing and Other revenues were $911 million, below the estimated $1.07 billion, showing a year-over-year increase of 3.3% [4] - Affiliate and Subscription fees reached $3.31 billion, slightly above the estimated $3.28 billion [4] - Direct-to-Consumer Subscription revenues were $1.44 billion, exceeding the estimated $1.41 billion, with a year-over-year increase of 7.3% [4] Stock Performance - Shares of Paramount Global-B have returned +4% over the past month, outperforming the Zacks S&P 500 composite, which declined by -2.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Paramount Global-B reported a quarterly loss of $0.11 per share, missing the Zacks Consensus Estimate of $0.10, and compared to earnings of $0.04 per share a year ago, indicating a significant earnings surprise of -210% [1][2] Financial Performance - The company posted revenues of $7.98 billion for the quarter ended December 2024, which was 1.94% below the Zacks Consensus Estimate, and an increase from $7.64 billion year-over-year [2] - Over the last four quarters, Paramount Global-B has surpassed consensus EPS estimates three times, but has only topped revenue estimates once [2] Stock Performance - Since the beginning of the year, Paramount Global-B shares have increased by approximately 9.9%, outperforming the S&P 500's gain of 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $7.16 billion, and for the current fiscal year, it is $1.53 on revenues of $28.91 billion [7] - The trend of estimate revisions for the company is mixed, which could change following the recent earnings report [6] Industry Context - The Media Conglomerates industry, to which Paramount Global-B belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - Paramount Global expects the merger with Skydance to close in early 2024 despite mixed quarterly results, with earnings impacted by stock-based compensation and softer revenue than Wall Street forecasts [1] Financial Performance - Paramount reported a net loss of $224 million for Q4, a significant decline from a profit of $514 million the previous year, with revenue increasing by 5% to $7.98 billion [2] - Direct-to-Consumer (DTC) segment performed well, with Paramount+ adding 5.6 million new subscribers in Q4, marking its best growth quarter in two years, totaling 77.5 million subscribers by year-end [2] - Streaming losses narrowed to $286 million from $490 million, with expectations for domestic profitability by year-end [2] Content and Engagement - Paramount+ achieved significant success with three of the top 10 SVOD originals, including titles from Taylor Sheridan [3] - Pluto TV experienced a record year, with a 16% increase in hours watched year-over-year for Q4 and an 8% increase for the full year [3] Filmed Entertainment - Filmed Entertainment revenue surged by 67% to $1.08 billion, driven by theatrical releases such as Gladiator II and Sonic the Hedgehog 3, the latter nearing $500 million at the global box office [4] - Gladiator II has grossed over $460 million globally, while the Sonic franchise has reached $1.2 billion across its three installments [4][5] Advertising and Media Revenue - TV Media advertising revenue decreased by 4%, attributed to declines in the linear advertising market and fewer sporting events on CBS, though partially offset by higher political advertising [5] - TV Media affiliate and subscription revenue fell by 7% due to subscriber declines, despite price increases, indicating challenges in transitioning to streaming [6] Strategic Direction - Company leadership emphasized a transformative year, marking a significant shift towards becoming a streaming-first company [6] - Paramount+ achieved record engagement levels, ranking as the 2 domestic SVOD service for hours watched across all Original Series [7]

Core Viewpoint - Paramount Global is set to report its fourth quarter and full year 2024 financial results on February 26, 2025, with a conference call scheduled for the same day at 4:30 p.m. (ET) [1] Group 1 - The conference call can be accessed via domestic and international phone numbers, with an access code provided for participants [2] - An audio replay of the call will be available later the same day, along with additional information on Paramount's Investors homepage [2][3] Group 2 - Paramount Global is a leading media, streaming, and entertainment company, known for its extensive portfolio that includes CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, and Pluto TV [3] - The company boasts one of the industry's largest libraries of TV and film titles and offers innovative streaming services and digital video products [3]

Core Insights - Paramount has entered into a co-financing agreement with Domain Capital Group for a minimum of 30 films of varying budgets [1][2] - The co-financing arrangement can be extended to 40 films under certain conditions [2] - Domain has previously co-financed notable Paramount releases such as Gladiator II and Sonic the Hedgehog 3 [1] Company Collaboration - Domain Capital Group's Managing Director, Pete Chiappetta, expressed enthusiasm about the partnership, highlighting the quality content produced by Paramount [3] - Paramount's Chief Operating Officer, Courtney Armstrong, emphasized the excitement of collaborating with Domain to deliver world-class entertainment [3] - Project X Entertainment's Paul Neinstein acted as an advisor for Domain in this deal, with legal counsel provided by Cataldo Law and Sheppard Mullin Richter & Hampton [3] Domain's Other Partnerships - Domain Capital Group also has a co-financing deal with Warner Bros, contributing to the studio's highest-grossing film, Barbie, which earned $1.44 billion [4] - Domain finances approximately 10% of each title on the Warner Bros. slate, including films like Aquaman and the Lost Kingdom and Wonka [4]

Company Overview - Paramount Group (NYSE: PGRE) is an internally managed REIT focused on office properties in New York and San Francisco, with a total of 13.8 million square feet across 18 properties as of the end of fiscal 2024 third quarter [1]. Investment Strategy - Pacifica Yield aims to pursue long-term wealth creation by focusing on undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1].

Core Insights - Paramount Global has renewed its contract with Nielsen after a four-month impasse over service costs, effective immediately and covering all Paramount platforms including broadcast, cable, and streaming [1][4] - The new deal includes licensing of Nielsen's Big Data + Panel services, which enhance insights into streaming viewership [2] - Nielsen's CEO expressed enthusiasm about the partnership, highlighting the success of Paramount's content and advertising strategy across various demographics [3] Contract Details - The renewed contract spans multiple years and includes comprehensive measurement services for Paramount's national and local broadcasts, cable networks, and streaming platforms [1] - The deal comes at a crucial time, coinciding with the viewership data release for the 67th Grammy Awards [7] Historical Context - The previous impasse was due to Paramount's concerns over the high costs of Nielsen's ratings services, which have faced scrutiny in a complex media landscape [4] - During the four-month period without Nielsen, Paramount attempted to navigate the ratings landscape independently [5] Performance Highlights - Nielsen acknowledged Paramount's recent successes, including record viewership for CBS's AFC Championship and strong performances from broadcast dramas [5][6] - Paramount+ originals such as Lioness, Tulsa King, and Landman have also gained recognition [6] Future Outlook - Both Paramount and Nielsen are committed to addressing the evolving multiplatform television landscape, aiming to benefit all stakeholders involved [8]

Group 1 - Paramount Global is in discussions with Donald Trump's team regarding a settlement for his $10 billion lawsuit against CBS related to the editing of a 60 Minutes interview with Kamala Harris [1][2] - A potential settlement would be a conciliatory gesture towards Trump, which could facilitate Paramount Global's sale to Skydance, pending regulatory approval from the Trump administration [2][4] - CBS has defended its editing of the interview, stating that the differences in responses were for time purposes and that the lawsuit is "completely without merit" [3][4] Group 2 - Trump's lawsuit against CBS is part of a broader pattern of legal actions he has taken against media entities, with many major outlets historically fighting these cases [3][4] - The current media landscape is experiencing significant changes, with speculation that media companies may seek mergers that require regulatory approval, potentially influenced by Trump's position [4] - Previous settlements involving Trump include a $15 million payment from ABC and a $25 million settlement from Meta, indicating a trend of media companies opting for settlements to avoid prolonged legal battles [5][6]