Paramount Earnings Report: Positive Outlook Despite Profit Disappointment

Paramount Global recently released its fourth-quarter earnings report, and while profits fell short of expectations, there are still some positive trends to note. The company’s Paramount+ streaming service saw a significant increase in subscribers, adding 5.6 million in the fourth quarter alone and reaching a total of 80 million subscribers. Direct-to-consumer revenue from Paramount+ also saw growth, up 8% year over year in the quarter and 13% for the full year.

Despite some challenges, including a decline in traditional television business and ongoing streaming profitability, Paramount Global remains optimistic about its future. Management has set a goal for domestic streaming to reach EBITDA profitability by 2025, and there are expectations for continued improvement in streaming profits.

While there may be some uncertainties surrounding the completion of the Skydance merger, investors should be encouraged by the positive data points and growth potential for Paramount Global. The company is working towards a more consolidated and profitable streaming business model, which is essential in today’s entertainment landscape.

Overall, we see Paramount Global as undervalued, with a fair value estimate of $20 per share. The company’s progress in the streaming space and potential for future growth make it an interesting stock to watch for investors looking to add diversity to their portfolios.