American entertainment conglomerate Paramount Global (PARA) is releasing its earnings for Q3 2022 by 2nd November 2022. The report would include the overall earnings of the company from July to September. Although PARA stock has been going through consistent drops for quite some time, analysts believe it could recover.
PARA stock price dropped upto 65% in the last five years, while 46% in a year and 21% in the last three months. However the stock price is consistent for at least a month or so. Currently it is maintaining its range within the 18 USD as support to 20 USD as resistance. PARA stock is trading at 19.02 USD, slightly up by 3.3% from yesterday.
Despite the average performance of Paramount Global stock, the overall performance of the company is expected to stay positive in the long term. Upcoming events and plans of the company keeps the trust and optimism among the investors.
Paramount’s Expansion in Europe
Paramount seems to hold significant potential of growth given its recently announced expansion of its on-demand services in Europe. The company stated it will provide its premium services of Paramount+ in France, Germany, Austria and Switzerland by December.
According to the last earnings report, Paramount said to have a user base of about 63.3 million. Out of this, 43 million accounts belong to Paramount+ subscribers. The company intends to bring the user base to 100 million by 2025 and it leaves a huge room for growth given the current user base.
In monetary terms, European expansion of Paramount will raise additional capital in upcoming years. The mass media company expects overall 81 billion USD in revenue by the end of this year. About 13.5 billion USD revenue would come from subscription video-on-demand (SVOD) in Europe. The company has plans to make the SVOD revenue from Europe to reach up to 26 billion USD in next five years.
Paramount+ Streaming Prices Likely to Go Up
Meanwhile, prices for streaming services play a crucial factor in growth of entertainment companies. In an interview with Yahoo Finance earlier this month, Paramount Global CEO Bob Bakish said to increase the streaming service prices.
Bakish’ tone had a sort of warning regarding the streaming prices going up. He said the consumers are likely to incur the increasing cost given the extraordinary value additional in their lives because of streaming services.
The company executive also mentioned the hikes in subscription prices of other prominent streaming services companies including Netflix, Disney, etc. He added that the overall streaming price slab is going to go up and so will the prices. However he did not say anything about the possibilities only that Paramount+ would not keep its premium price as 9.99 USD for long.
EPS Remains Strong Point for PARA Stock
Optimism around the PARA stock is reflecting on estimates for its upcoming earnings release for Q3 2022. Zach Investment Research analysts predict the earnings per share (EPS) for the stock 0.43 USD. Although the EPS is way down from 0.76 during Q3 2021, it’s in line towards good results.
Previous two earnings releases of this year were evident of this where the reported EPS remained higher than the estimated. According to Nasdaq, the reported EPS for the last two quarters remained above the estimated figures.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/10/29/analysts-hopes-paramount-global-strategies-good-for-para-stock/