Based in Los Gatos, California, Netflix, Inc. (NFLX) is a leader in streaming entertainment, offering a wide range of original series, films, and licensed content to millions of subscribers worldwide. With a market cap of $306.48 billion, Netflix delivers on-demand entertainment across various genres and languages, serving individual consumers and households. The company is set to announce its Q3 earnings before the market opens on Thursday, Oct. 17.
Ahead of the event, analysts expect NFLX to report a profit of $5.07 per share, up 35.9% from $3.73 in the year-ago quarter. The company has beaten Wall Street's bottom-line estimates in three of the last four quarters while missing on another occasion.
Its adjusted earnings of $4.88 per share for the last quarter surpassed the consensus estimate by 3.8%. Netflix's quarterly outperformance was fueled by solid subscriber growth and successful content offerings.
For fiscal 2024, analysts expect NFLX to report EPS of $19.08, up 58.6% from $12.03 in fiscal 2023.
NFLX stock is up 46.1% on a YTD basis, significantly outperforming the broader S&P 500 Index's ($SPX) 19.7% gains and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 24.1% returns over the same time frame.
Netflix shares fell 1.5% following its Q2 earnings release on Jul. 18, despite beating Wall Street’s expectations for revenue. The company reported a substantial 16.8% increase in quarterly revenue, a 44.4% rise in net income, and an addition of over 8 million new subscribers, up from 5.9 million in the same quarter last year.
However, Netflix’s Q3 revenue guidance of $9.7 billion fell below analysts' expectations, causing some investor concern. Nevertheless, the stock recovered by 2.2% in the following trading session.
The consensus opinion on NFLX stock is moderately optimistic, with an overall “Moderate Buy” rating. Out of 40 analysts covering the stock, 22 advise a “Strong Buy,” two suggest a “Moderate Buy,” 15 indicate a “Hold,” and one suggests a “Strong Sell.”
NFLX’s average analyst price target is $705.19, which indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
