Investing

Earnings Previews: BP, Marathon Petroleum, Paramount Global, Pfizer

Paramount Global

Media giant Paramount Global (NASDAQ: PARA) was known as ViacomCBS until February. Perhaps the company hoped that a new name would reverse the share price decline of around 31% before the change. It might have helped a little, as shares are down 26% over the past 12 months. Following Netflix’s quarterly report, Paramount and every other streaming media company became collateral damage. Now the company has to demonstrate that it has a growth plan for its streaming business and some way to stop the bleeding in the cable business.

Analysts are mildly optimistic, with 11 of 27 giving the stock a Buy or Strong Buy rating and 12 rating the shares at Hold. At a share price of around $29.40, the upside potential to the median price target of $36 is about 22.5%. At the high price target of $60, the upside potential is 104%.

Paramount is expected to post first-quarter revenue of $7.39 billion, down 7.7% sequentially and just 0.2% lower year over year. Adjusted EPS are forecast at $0.52, down 86.8% sequentially and nearly 66% lower year over year. For full fiscal 2022, analysts are looking for EPS of $2.69, down 22.6% year over year, on revenue of $30.7 billion, up 7.4%.

The stock trades at 11.0 times expected 2022 EPS, 13.1 times estimated 2023 earnings of $2.26 and 10.9 times estimated 2024 earnings of $2.71 per share. Paramount’s 52-week range is $27.25 to $47.45. The company pays an annual dividend of $0.96 (yield of 3.3%). Total shareholder return for the past 12 months was negative 27.4%.

Pfizer

Dow Jones industrial average component Pfizer Inc. (NYSE: PFE) has had a share price gain of more than 32% over the past 12 months, and shares reached an all-time high in mid-December. Since then, the shares have dropped more than 18%.

Its Paxlovid treatment for COVID-19, which was approved last quarter, is now being questioned regarding relapses among some patients who completed the five-day course of treatment. Pfizer and partner BioNTech have submitted an application to the U.S. Food and Drug Administration for a vaccine booster for children ages 5 through 11.

Of 23 analysts covering the stock, 14 rate the stock at Hold and nine have a Buy or Strong Buy rating. At a share price of around $49.40, the upside potential based on a median price target of $57 is 15.4%. At the high target of $76, the upside potential is 53.8%.


First-quarter revenue is forecast at $24.73 billion, up 3.8% sequentially and 69.6% year over year (pre-vaccine). Adjusted EPS are pegged at $1.57, up nearly 45% sequentially and 82.2% year over year. For the full 2022 fiscal year, analysts expect Pfizer to report EPS of $7.13, up 61.3%, on sales of $105.9 billion, up 30.3%.

Pfizer stock trades at 6.9 times expected 2022 EPS, 9.0 times estimated 2023 earnings of $5.46 and 11.0 times estimated 2023 earnings of $4.51 per share. The stock’s 52-week range is $37.96 to $61.71. Pfizer pays an annual dividend of $1.60 (yield of 3.27%). Total shareholder return for the past 12 months was 32.7%.

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