Earnings Outlook For Netflix

Netflix NFLX is gearing up to announce its quarterly earnings on Thursday, 2025-04-17. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Netflix will report an earnings per share (EPS) of $5.73.

Anticipation surrounds Netflix's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

During the last quarter, the company reported an EPS beat by $0.07, leading to a 9.69% increase in the share price on the subsequent day.

Here's a look at Netflix's past performance and the resulting price change:

Performance of Netflix Shares

Shares of Netflix were trading at $976.28 as of April 15. Over the last 52-week period, shares are up 58.62%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Netflix

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Netflix.

The consensus rating for Netflix is Outperform, based on 29 analyst ratings. With an average one-year price target of $1088.07, there's a potential 11.45% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Walt Disney, Live Nation Entertainment and Warner Bros. Discovery, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Walt Disney, with an average 1-year price target of $124.29, suggesting a potential 87.27% downside.
• Analysts currently favor an Buy trajectory for Live Nation Entertainment, with an average 1-year price target of $170.0, suggesting a potential 82.59% downside.
• Analysts currently favor an Outperform trajectory for Warner Bros. Discovery, with an average 1-year price target of $13.67, suggesting a potential 98.6% downside.

Overview of Peer Analysis

Within the peer analysis summary, vital metrics for Walt Disney, Live Nation Entertainment and Warner Bros. Discovery are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Netflix is positioned at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Discovering Netflix: A Closer Look

Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 300 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.

Unraveling the Financial Story of Netflix

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Netflix's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 16.0%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: Netflix's net margin is impressive, surpassing industry averages. With a net margin of 18.24%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.87%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Netflix's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.53% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Netflix's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.63.

To track all earnings releases for Netflix visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.