Paramount (NASDAQ:PARA) recently released its Q1 CY2024 earnings report, falling short of analysts’ expectations. Despite a 5.8% year-on-year increase in revenue to $7.69 billion, the company missed revenue estimates. However, Paramount did show improvement in its non-GAAP profit, earning $0.62 per share compared to $0.11 per share in the same quarter last year.
Key highlights from Paramount’s Q1 CY2024 report include:
- Revenue of $7.69 billion, slightly below analyst estimates of $7.74 billion
- Earnings per share (non-GAAP) of $0.62, surpassing analyst estimates of $0.36
- Gross Margin (GAAP) increased to 32.9% from 31.7% in the previous year
- Free Cash Flow of $209 million, a 52.8% decrease from the previous quarter
- Market Capitalization of $8.36 billion
The broadcasting sector, including companies like Paramount, has been experiencing challenges due to the shift in consumer behavior towards streaming services over traditional television and radio. To adapt, many broadcasters are forming partnerships with major streaming platforms to capture new revenue streams. However, the sustainability and profitability of these subscription models remain uncertain in the long run.
When evaluating a company’s performance, long-term sales growth is a crucial indicator of its business strength. Paramount’s annualized revenue growth rate of 1.9% over the past five years reflects its ability to maintain consistent growth, showcasing its resilience amidst changing market dynamics.
