Discover the potential in 2024 for three prominent media giants.
Paramount Global (PARA)
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Paramount Global (NASDAQ:PARA) stands as a prominent media corporation hailed for its TV channels, Filmed Entertainment division (including Paramount Pictures), and Direct-to-Consumer segment featuring Paramount+, among others. While PARA faced negative EPS in its first two quarters of 2023, recent quarters saw a dramatic shift with remarkably positive earnings exceeding expectations by 1,100% and 275%. Notably, the Direct-to-Consumer segment witnessed a 38% YoY revenue increase, with Paramount+ subscriptions soaring by 46% and total revenue spiking by 61%. However, the segment’s bottom line remained in the red, showcasing a 31% jump in adjusted OIBDA, and the company anticipates robust year-end performance compared to the previous year. Stirring up further interest, rumors abound regarding Paramount’s discussions with Warner Bros. about a potential merger, a development that could significantly impact stock prices.
The Walt Disney Company (DIS)
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The Walt Disney Company‘s (NYSE:DIS) journey from a humble animation company to a global entertainment giant is a true success story. Acquiring renowned entities such as Lucas Films, 20th Century Studios, and Marvel Studios, Disney has continued to expand its influence, notably through the Disney+ streaming service, which has rapidly emerged as a serious competitor to Netflix. Despite past challenges following the end of exceptional successes with its IPs, DIS saw a resurgence under the leadership of Bob Iger, with a renewed focus on Entertainment and Experiences while effectively managing costs. Evidencing this shift, recent EPS exceeded expectations, and FY’23 revenue concluded 7% higher. Analysts anticipate the combined streaming services to turn profitable by Q4’24, setting the stage for promising future prospects.
Warner Music Group Corp: Hitting the Right Notes in FY’23
Overview of Warner Music Group Corp
Warner Music Group Corp (NASDAQ: WMG), part of the revered “Big Three” in music, is a powerhouse holding company operating through Recorded Music and Music Publishing segments. With the rights to over a million songs and contracts with more than 65,000 artists, WMG is a dominant force in the music industry. Notably, the company achieved a milestone by becoming the first standalone music company to go public in the United States.
Recent Performance and Financial Results
Despite a challenging start in FY’23, Warner Music rebounded impressively in the recent quarter. CEO Robert Kyncl expressed confidence in the turnaround, attributing it to a series of favorable developments fueling the company’s success. Notably, revenue climbed 6% (5% in constant currency) while net income rose by 2.67% year-over-year, signaling a marked improvement. Furthermore, the Music Publishing segment saw a remarkable 17% growth, while the company achieved its second consecutive positive EPS surprise of 36%.
Record-Breaking Milestones and Analyst Confidence
Warner Music Group Corp celebrated a historic achievement as its full-year revenue surpassed the $6 billion mark for the first time. Bolstered by positive forward-looking indicators and heightened analyst confidence, WMG is emerging as a premier choice for investors eyeing the media sector. The company’s upward trajectory and burgeoning potential underscore its attractiveness as one of the most promising media stocks in the contemporary landscape.
