Streaming video giant Netflix (NASDAQ: NFLX) will be reporting earnings tomorrow after market hours. Here’s what to expect.
Netflix beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $10.25 billion, up 16% year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations significantly. It reported 301.6 million users, up 15.9% year on year.
Is Netflix a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Netflix’s revenue to grow 12.1% year on year to $10.51 billion, slowing from the 14.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.73 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Netflix has missed Wall Street’s revenue estimates twice over the last two years.
With Netflix being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for consumer internet stocks. However, the whole sector has faced a sell-off over the last month with stocks in Netflix’s peer group down 6.5% on average. Netflix is up 5.6% during the same time and is heading into earnings with an average analyst price target of $1,065 (compared to the current share price of $981).
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