Why Is Paramount Global-B (PARA) Up 5.4% Since Last Earnings Report?

Core Viewpoint - Paramount Global reported strong Q1 2024 earnings, with adjusted earnings significantly exceeding estimates and revenues showing year-over-year growth, indicating positive momentum in its business segments [2][3]. Financial Performance - Adjusted earnings for Q1 2024 were 62 cents per share, surpassing the Zacks Consensus Estimate by 82.35% and up from 9 cents in the same quarter last year [2]. - Revenues reached $7.68 billion, beating estimates by 0.1% and reflecting a 5.8% increase year-over-year, driven by growth in Direct-to-Consumer (DTC), TV Media, and Filmed Entertainment [2]. Revenue Breakdown - Advertising revenues accounted for 40.3% of total revenues, amounting to $3.09 billion, a 16.8% increase year-over-year [4]. - Affiliate revenues, making up 43.7% of total revenues, rose 5.6% year-over-year to $3.35 billion [4]. - Theatrical revenues increased by 20% year-over-year to $153 million, while content-licensing revenues fell 17.5% year-over-year to $1.07 billion [4]. Segment Performance - DTC revenues surged 24% year-over-year to $1.87 billion, with subscription revenues climbing 22% to $1.35 billion, driven by subscriber growth and increased pricing for Paramount+ [5][6]. - Paramount+ subscribers reached approximately 71 million, with a 51% revenue increase attributed to subscriber growth and ARPU expansion [6]. - TV Media revenues rose 1% year-over-year to $5.23 billion, with advertising revenues increasing 14% to $2.58 billion, benefiting from CBS' broadcast of Super Bowl LVIII [8][9]. - Filmed Entertainment revenues grew 3% year-over-year to $605 million, with theatrical revenues up 20% to $153 million [11]. Cost Management - Selling, general and administrative expenses decreased by 5.2% year-over-year to $1.66 billion, contributing to improved profitability [3]. Balance Sheet - As of March 31, 2024, cash and cash equivalents stood at $2.38 billion, down from $2.46 billion at the end of 2023, while total debt remained unchanged at $14.6 billion [12]. Market Sentiment - Despite strong earnings, estimates have trended downward, with a consensus estimate shift of -17.78% noted [13]. - Paramount Global-B holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [15].