Paramount Global (NASDAQ:PARA) Releases Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• Paramount Global reported a quarterly earnings per share (EPS) of $0.46, exceeding expectations by $0.09, although revenue fell slightly short of estimates at $6.85 billion.
• The company announced a quarterly dividend of $0.05 per share, with a dividend yield of 1.5%, and a troubling dividend payout ratio of -666.67%.
• Despite beating earnings forecasts, multiple analysts have downgraded their price targets for Paramount Global, with the average price target now set at $11.70.

Paramount Global (NASDAQ:PARA - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.46 EPS for the quarter, topping analysts' consensus estimates of $0.37 by $0.09, Zacks reports. The company had revenue of $6.85 billion for the quarter, compared to analyst estimates of $6.88 billion. Paramount Global had a positive return on equity of 4.53% and a negative net margin of 0.05%. Paramount Global's revenue was up .5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.54 earnings per share.

Paramount Global Stock Performance

Shares of NASDAQ PARA traded up $0.44 during mid-day trading on Friday, reaching $13.01. 9,686,336 shares of the company were exchanged, compared to its average volume of 11,023,689. The company has a quick ratio of 1.18, a current ratio of 1.29 and a debt-to-equity ratio of 0.84. The company's 50-day simple moving average is $12.52 and its 200-day simple moving average is $11.73. Paramount Global has a twelve month low of $9.95 and a twelve month high of $13.59. The stock has a market capitalization of $8.77 billion, a P/E ratio of -433.52, a P/E/G ratio of 3.86 and a beta of 1.19.

Paramount Global Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 1st. Stockholders of record on Monday, June 16th were paid a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date was Monday, June 16th. Paramount Global's dividend payout ratio (DPR) is currently -666.67%.

Hedge Funds Weigh In On Paramount Global

Institutional investors and hedge funds have recently modified their holdings of the business. United Services Automobile Association acquired a new position in shares of Paramount Global in the first quarter valued at about $142,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Paramount Global by 5.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 63,703 shares of the company's stock valued at $762,000 after acquiring an additional 3,264 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Paramount Global by 9.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,966,070 shares of the company's stock valued at $23,514,000 after acquiring an additional 169,537 shares in the last quarter. 73.00% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on PARA shares. Benchmark reduced their target price on shares of Paramount Global from $19.00 to $16.00 and set a "buy" rating for the company in a research note on Tuesday, May 6th. Wall Street Zen started coverage on shares of Paramount Global in a research note on Saturday, May 17th. They set a "hold" rating for the company. UBS Group reduced their price objective on shares of Paramount Global from $11.00 to $10.00 and set a "sell" rating for the company in a research note on Tuesday, April 15th. Seaport Res Ptn downgraded shares of Paramount Global from a "hold" rating to a "strong sell" rating in a research note on Monday, July 28th. Finally, Needham & Company LLC restated a "hold" rating on shares of Paramount Global in a research note on Tuesday, July 22nd. Seven equities research analysts have rated the stock with a sell rating, four have issued a hold rating and two have given a buy rating to the stock. According to data from MarketBeat.com, Paramount Global currently has an average rating of "Hold" and a consensus price target of $11.70.

Paramount Global Company Profile

Paramount Global operates as a media, streaming, and entertainment company worldwide. It operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. The TV Media segment operates CBS Television Network, a domestic broadcast television network; CBS Stations, a television station; and international free-to-air networks comprising Network 10, Channel 5, Telefe, and Chilevisión; domestic premium and basic cable networks, such as Paramount+ with Showtime, MTV, Comedy Central, Paramount Network, The Smithsonian Channel, Nickelodeon, BET Media Group, and CBS Sports Network; and international extensions of these brands.

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