Paramount Global to Post Q1 Earnings: What's in Store for the Stock?

Core Viewpoint - Paramount Global (PARA) is expected to report a decline in both revenues and earnings for the first quarter of 2025 compared to the previous year, with significant factors influencing these results [1][4][6]. Financial Performance Expectations - The Zacks Consensus Estimate for PARA's first-quarter 2025 revenues is $7.1 billion, reflecting a 7.56% decrease from the same quarter last year [1]. - The consensus estimate for earnings is 30 cents per share, which represents a 51.61% decrease year-over-year and has been revised downward by 21.05% in the last 30 days [1]. Subscriber Growth and Content Strategy - PARA added 5.6 million new subscribers on Paramount+ in the fourth quarter of 2024, and subscriber growth is expected to continue, albeit at a slower pace due to content release timing [5]. - The company is anticipated to maintain content momentum on Paramount+, with the return of popular shows and the launch of new series [4]. Advertising and Affiliate Revenue Trends - In the TV Media segment, affiliate revenues are projected to decline by 6.7% year-over-year, with an increased rate of decline expected in the first quarter due to recent renewals and changes in the pay TV ecosystem [6][7]. - Advertising revenues also saw a decline of 4% year-over-year in the previous quarter, with similar trends likely to persist [6]. Adjusted OIBDA and Business Trends - Adjusted OIBDA is expected to decline in the first quarter, influenced by the aforementioned business trends and the comparison to the Super Bowl, which had a positive impact in 2024 [7]. - The cumulative impact of recent renewals with major distributors is another significant factor affecting performance [7]. Earnings Expectations and Model Insights - PARA currently has an Earnings ESP of -24.85% and a Zacks Rank of 3 (Hold), indicating lower odds of an earnings beat [8].