Commanding a whooping market cap of $400.2 billion, Netflix, Inc. (NFLX) is a global streaming giant offering a vast library of TV shows, movies, and original content through a subscription-based model. With a presence in over 190 countries, the company drives growth through heavy investments in exclusive content, expansion into gaming, and strategic pricing models, including an ad-supported tier. The company is set to release its first-quarter earnings after the market closes on Thursday, Apr. 17
Ahead of the event, analysts expect Netflix to report an adjusted profit of $5.74 per share, up 8.7% from $5.28 per share reported in the year-ago quarter. The company’s earnings surprise history is solid, as it surpassed Wall Street’s bottom-line estimates in all of the past four quarters. Its adjusted EPS of $4.27 for the last reported quarter surpassed analysts’ estimates by 1.7%.
For fiscal 2025, Netflix’s adjusted EPS is expected to increase 24% year-over-year from $19.83 in fiscal 2024 to $24.58. In fiscal 2026, its earnings are expected to grow 20.7% year-over-year to $29.66 per share.
NFLX stock prices have soared 45.6% over the past year, significantly outperforming the S&P 500 Index’s ($SPX) 3.6% returns and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 11.7% surge during the same time frame.
Netflix shares popped 3.7% following an upgrade from MoffettNathanson analyst Robert Fishman, who raised its rating from “Neutral” to “Buy” and increased its price target from $850 to $1,100. The firm believes the market is undervaluing Netflix’s ability to monetize its vast user base through advertising and improved technology. Analyst Robert Fishman forecasts its ad revenue to grow at a 37% CAGR, reaching over $10 billion by 2030, potentially boosting profit margins and earnings.
The consensus opinion on NFLX is reasonably bullish, with an overall “Moderate Buy” rating. Out of the 43 analysts covering the stock, 28 recommend “Strong Buy,” two advise “Moderate Buy,” 12 suggest “Hold,” and the remaining analyst advocates a “Moderate Sell” rating.
Its mean price target of $1,084.54 indicates a potential upswing of 18.3% from the current market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
