Stock Story -
Streaming video giant Netflix (NASDAQ: NASDAQ:NFLX) will be reporting results tomorrow after market hours. Here's what to expect.
Netflix met analysts' revenue expectations last quarter, reporting revenues of $9.37 billion, up 14.8% year on year. It was a good quarter for the company: Netflix beat analysts' estimates for nearly every metric we track: paid subscribers, revenue, operating income, EPS, and free cash flow. Looking ahead, it raised its operating profitability expectations as this quarter's margin expanded seven percentage points year on year, reaching 28%. It reported 269.6 million users, up 16% year on year.
Is Netflix a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Netflix's revenue to grow 16.4% year on year to $9.53 billion, improving from the 2.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.76 per share.
The majority of analysts covering the company have 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 four times 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, there has been positive investor sentiment in the segment, with share prices up 6.7% on average over the last month. Netflix is down 4.3% during the same time and is heading into earnings with an average analyst price target of $665.0 (compared to the current share price of $656.41).
