Multinational media and entertainment corporation Paramount (NASDAQ:PARA) will be reporting earnings tomorrow after market hours. Here's what you need to know.
Paramount met analysts' revenue expectations last quarter, reporting revenues of $7.69 billion, up 5.8% year on year. It was a solid quarter for the company, with an impressive beat of analysts' earnings estimates.
Is Paramount a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Paramount's revenue to decline 5% year on year to $7.24 billion, a further deceleration from the 2.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Paramount has missed Wall Street's revenue estimates five times over the last two years.
Looking at Paramount's peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. FOX delivered year-on-year revenue growth of 2%, meeting analysts' expectations, and Rush Street Interactive reported revenues up 33.5%, topping estimates by 9.4%. Rush Street Interactive traded up 7.9% following the results.
Read our full analysis of FOX's results here and Rush Street Interactive's results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Paramount is down 9.4% during the same time and is heading into earnings with an average analyst price target of $12.7 (compared to the current share price of $10.45).
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