Paramount Global (PARA) Stock Forecast & Price Target

Paramount Global demonstrated strong financial performance across its segments, with licensing and other revenue rising 17% year-over-year to $661 million. The Filmed Entertainment segment experienced a significant 67% increase in revenue, reaching $1.1 billion, bolstered by successful film releases, while the Direct to Consumer segment saw a subscriber increase of 5.6 million for Paramount+, contributing to an 8% rise in total revenues. Additionally, engagement metrics improved with a 20% year-over-year increase in global watch time per user, resulting in a reduction in churn and underscoring the stability of the company's subscriber base.

Paramount Global's financial performance in 4Q24 reflects significant challenges, with affiliate revenues declining by 6.7% year-over-year to $1.869 billion and further declines expected due to upcoming contract renewals with lower rates. The company reported total revenue of $7.98 billion, falling short of consensus expectations, driven by deteriorating advertising trends and continued losses in its film segment, contributing to an adjusted OIBDA loss of $42 million. Additionally, operational cash flow decreased by 70% year-over-year to $168 million, exacerbating concerns over the company's financial stability and future growth potential.