Netflix Q1 2023 Earnings Anticipation: Analysts Foresee Subscriber Surge Post-Password Sharing Crackdown

Dennis Dick, a CFA charterholder, professional trader and equity analyst, is bullish on Netflix Inc's NFLX Q1 earnings, anticipating subscriptions to jump after the company announced a halt in password sharing, he said during Benzinga's Premarket Prep show on Tuesday.

“Fifteen dollars a month is still a cheap entertainment subscription,” according to the analyst, who also thought that Netflix's comeback is going to negatively affect The Walt Disney Company DIS. 

Dick stated that he is neutral on the market, but positive on underperforming stocks in 2023. "I’m not chasing Microsoft Corp. MSFT, Amazon, Inc. AMZN, Apple, Inc. AAPL, Nvidia Corp. NVDA or Tesla, Inc. TSLA. There are a lot of stocks not that far from the lows," he said.

Also Read: Bullish Bets On Netflix: Options Traders Anticipate A Significant Stock Surge By Week's End

Bank of America Is Also Bullish On Netflix

Bank of America also shared bullish views on Netflix's Q1 earnings. Third-party evidence suggests U.S. and Canadian subscriber figures will be at least 100,000 more than expected, research analyst Jessica Reif Ehrlich said in a note. 

BofA sees the crackdown on password sharing as an enormous long-term opportunity, with a sizable upside realized this year and the next. The bank holds a Buy rating on Netflix shares, with a price target of $410 per share, 39% higher than current levels. 

Goldman Sachs Remains Bearish On Netflix

Eric Sheridan and Brett Feldman, equity analysts at Goldman Sachs, believe Netflix will report in-line (or slightly better) subscriber growth in Q1. 
Goldman believes Netflix management will frame the password crackdown as a longer-term strategy in 2023, with a stronger focus on specific regions.  
Looking ahead to the rest of 2023, Goldman Sachs expressed worries about the impact of a consumer recession, as well as increased competition on Netflix demand trends. 
Goldman Sachs has a Sell rating on NFLX shares, with a price target of $230, or a 30% downside from current levels.

What Consensus Analysts Expect 

Netflix will report Q1 results after the closing bell on Tuesday, April 18.

Analysts anticipate quarterly earnings per share of $2.86 and sales of $8.18 billion. In Q4 2022, Netflix fell short of profit expectations by 78% ($0.12 reported vs $0.55 expected). 

Shares of Netflix are trading 52% below the all-time highs set in November 2021. 

Read next: Netflix, Disney Face New Threat In India As Country's Richest Person Plots Gigantic Streaming Expansion

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