Paramount Global (PARA) Stock Forecast & Price Target

Paramount Global reported impressive financial growth across its key segments, with licensing and other revenue rising 17% year-over-year to $661 million. The Filmed Entertainment segment saw a remarkable 67% increase in revenue to $1.1 billion, driven significantly by a strong box office performance from several high-profile releases. Additionally, the Direct to Consumer segment experienced an 8% revenue growth, bolstered by a subscriber increase of 5.6 million for Paramount+, leading to a total of 77.5 million subscribers and reduced churn rates, indicating robust consumer engagement and retention.

Paramount Global's financial performance in 4Q24 exhibited notable weaknesses, highlighted by a 6.7% year-over-year decline in affiliate revenues and guidance indicating further decreases in 1Q25 due to unfavorable contract renewals. The company's total revenue of $7.98 billion fell short of expectations, driven by adverse trends in advertising and continued losses in the film segment, which together contributed to an adjusted OIBDA loss of $42 million. Furthermore, operational cash flow decreased significantly by 70% year-over-year, alongside a staggering 87% drop in free cash flow, underscoring the company's escalating financial challenges.