NEW YORK - Paramount Global (NASDAQ:PARA) reported second-quarter earnings that significantly exceeded analyst expectations, despite a revenue shortfall. The company's shares jumped more than 6% following the announcement.
The media and entertainment giant posted adjusted earnings per share of $0.54 for the quarter ended June 30, 2024, surpassing the analyst consensus of $0.12 by $0.42. This strong bottom-line performance came as a surprise to investors, given the challenging market conditions in the media industry.
Revenue for the quarter came in at $6.81 billion, falling short of the $7.23 billion analysts had projected.
"Our second-quarter results demonstrate the strength of our diverse content portfolio and our ability to execute in a rapidly evolving media landscape," said Bob Bakish, President and CEO of Paramount Global. "We remain focused on delivering value to our shareholders while investing in our future growth initiatives."
Paramount Global's portfolio includes iconic brands such as CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, and Pluto TV.
Looking ahead, Paramount is heading into the Skydance merger, a deal expected to close in the first half of 2025.
The deal includes a $15 per share offer for up to 50% of shares, "which limits fundamental upside/downside," according to Wells Fargo (NYSE:WFC) analysts. They upgraded the PARA stock from Underweight to Equal Weight during this holding period.
"We see PARA shares as rangebound pending the Skdyance merger," analysts noted.
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