By Connor Hart
Netflix is scheduled to release its first-quarter earnings after the market closes Thursday. Here is what you need to know:
PROFIT: The streamer is expected to post a profit of $2.48 billion, or $5.67 a share, according to the consensus forecast of analysts surveyed by FactSet. In the same quarter a year ago, the company logged earnings of $2.33 billion, or $5.28 a share.
REVENUE: Sales are modeled by analysts to rise to $10.5 billion from $9.4 billion in the year-earlier quarter.
The stock has climbed 15% in the past three months and was recently trading at $972.89.
WHAT TO WATCH:
-- Netflix wants to double revenue and achieve a $1 trillion market capitalization by 2030, The Wall Street Journal reported. These goals will in part require adding more than 100 million global subscribers in the coming years. The streamer added 18.9 million subscribers globally last quarter, which marked the last period in which the company plans to disclose net new subscribers. While investors may not get an updated subscriber count, they will be looking for commentary around how many people continue joining the platform globally.
-- Netflix's ad-supported tier has reinvigorated subscriber growth and is still gaining scale. Given its nascency, Bank of America analysts say in a research note that they expect Netflix's ad business to benefit the company, even in a more challenging advertising backdrop. (Some advertisers are worried that tariffs could result in a significant economic downturn that throws the U.S. economy into a recession and causes ad spending to tumble.) Investors will be looking for an update on the streamer's ad business.
-- Even if the U.S. economy enters a recession, Bank of America analysts say that Netflix is better positioned to withstand the downturn than other technology and Magnificent Seven companies. The analysts cite the company's strong subscription model with critical entertainment offering, which historically perform well in recessions. The company also stands to benefit from its ongoing foray into live entertainment, with live sports being one of the few areas of broadcast TV left that Netflix hasn't fully disrupted.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
April 16, 2025 13:11 ET (17:11 GMT)
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