Netflix Earnings: What To Look For From NFLX

Jabin Bastian /
2023/07/18 8:56 am EDT

Streaming video giant Netflix (NASDAQ: NFLX) will be reporting earnings tomorrow after market close. Here's what investors should know.

Last quarter Netflix reported revenues of $8.16 billion, up 3.73% year on year, missing analyst expectations by 0.2%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and slow revenue growth. The company reported 232.5 million users, up 4.9% year on year.

Is Netflix buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Netflix's revenue to grow 3.99% year on year to $8.29 billion, slowing down from the 8.56% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.86 per share.

Netflix Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing ten upwards revisions over the last thirty days. The company missed Wall St'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 at to get a hint at how this quarter will unravel for consumer internet stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 12.5% over the last month. Netflix is up 4.16% during the same time, and is heading into the earnings with analyst price target of $425.35, compared to a share price of $452.90.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.