Paramount Global (NASDAQ: PARA) stock is down 10% this year, and the stock is now lower than when Warren Buffett's company, Berkshire Hathaway, bought shares in the first quarter of this year. Paramount recently reported financial results for its second quarter, which beat expectations and may shed some light on why Buffett bought the stock. Let's break it down.

Last week, Paramount released second-quarter earnings that were met favorably by investors. Revenue for the company grew  19% to $7.8 billion during the quarter, which beat Wall Street forecasts of $7.55 billion. Earnings per share of $0.64 also beat forecasts of $0.62 for the quarter.

The star of the show was Paramount's highly anticipated theatrical release of Top Gun: Maverick. The movie was one of the first blockbuster releases after a long COVID-19-related hibernation for movie theaters. The film grossed more than $1.3 billion in global box office receipts. At the domestic box office, Top Gun: Maverick passed Paramount's own Titanic as the seventh highest-grossing movie in history.

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Source Fool.com