Paramount's stock gains momentum following a robust earnings announcement, contributing to a remarkable day.

• Paramount Global’s stock moved higher following a strong earnings report.
• During regular trading hours, the media giant's shares experienced a 10% increase in value.
• Ad revenue, however, was a weak spot for Paramount.

In extended trading on Thursday, Paramount Global's stock increased after the company reported impressive revenue and subscription growth in its third-quarter earnings.

The media giant experienced a more than 10% increase in stock value during regular trading hours on Thursday, followed by an after-hours move.

Paramount, which houses brands such as CBS, Showtime, BET, Nickelodeon, and its namesake movie studio, experienced a 38% increase in revenue year over year. In the third quarter, Paramount+ reported 2.7 million net additions to its 63 million total subscriber count. Additionally, the company's streaming segment saw a significant improvement, with losses narrowing from $343 million to $238 million year over year.

Wall Street estimates for Paramount's third-quarter performance were surpassed.

• According to LSEG, formerly known as Refinitiv, earnings per share were 30 cents instead of the expected 10 cents per share.
• Revenue: $7.13 billion vs. $7.099 billion expected, according to LSEG

During the period ending Sept. 30, Paramount reported a profit of $295 million, or 43 cents a share, compared to $231 million, or 33 cents a share, in the previous year. However, when adjusted for one-time items, earnings per share were 30 cents during the period.

CEO Bob Bakish stated in a release that the company will continue to implement its strategy, prioritize wise investment in streaming, and maximize the profits of its traditional business. He added that the company is on track to achieve significant total earnings growth in 2024.

Roku's 30% surge in stock price following its impressive earnings report led to the closing of Paramount and other media stocks higher on Thursday.

The revenue from theatrical showings increased by 63% annually, according to the company, due to movies such as "Mission: Impossible – Dead Reckoning Part One" and "Teenage Mutant Ninja Turtles: Mutant Mayhem."

Paramount anticipates that its full-year streaming losses in 2023 will be lower than the previous year. The revenue in the segment increased by 38% to $1.69 billion compared to the previous year.

Despite facing difficulties in the TV ad market, with advertising revenue decreasing by 14% annually, the company attributed this to the global advertising market's persistent softness and lower political advertising.

As the industry continues to evolve, it is crucial for us to remain agile and adaptive while executing our strategy to create world-class content with mass popular appeal, delivered across platforms and monetized across multiple revenue streams.

The company experienced a 7% decrease in licensing and other revenue due to labor strikes.

Despite the increase in expenses due to the SAG-AFTRA and WGA strikes, Paramount executives expressed confidence in the strength of their content during the earnings call.

Paramount+ is not planning to implement a password-sharing crackdown like Netflix and Disney.

Chopra stated on the earnings call that although the current situation presents a challenge to growth efforts, it is something that will be closely monitored. However, he believes there is a way to address it in a beneficial and imaginative manner. Currently, Chopra sees strong growth drivers at play.