Commanding a strong market cap of $294.2 billion, California-based Netflix, Inc. (NFLX), is a pioneering force in the global streaming entertainment industry, delivering a vast array of content across diverse genres and languages. The streaming giant is gearing up to lift the curtains on its fiscal Q2 earnings results after the market closes on Thursday, July 18.
Ahead of this event, analysts expect Netflix to report a profit of $4.70 per share, up 42.9% from $3.29 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. A significant surge in subscriber growth helped the company exceed the consensus EPS estimate by an impressive 17.1% margin in the most recent quarter.
For fiscal 2024, analysts expect NFLX to report EPS of $18.31, up 52.2% from $12.03 in fiscal 2023. Looking ahead to fiscal 2025, EPS is projected to climb another 20.8% annually to $22.12.
Netflix has outperformed the broader markets over the past 52 weeks, with shares up 54.6% versus the S&P 500 Index's ($SPX) 24.3% gain and the S&P 500 Communication Sector SPDR's (XLC) 31.8% returns over the same period.
Netflix kicked off 2024 on a promising note, as shares jumped to a two-year high on Jan. 24, primarily due to the company's strong financial results for 2023, which showcased significant growth in paid memberships, higher-than-expected profits, and promising forecasts for revenue and operating margins in 2024. However, the stock faced a setback on Apr. 19, tumbling nearly 9.1% following its Q1 earnings results primarily due to a lower revenue forecast for the upcoming quarter and concerns over its decision to cease quarterly reporting of subscriber numbers.
Nevertheless, analysts' consensus view on Netflix stock remains cautiously optimistic, with a "Moderate Buy" rating overall. Out of 39 analysts covering the stock, 21 recommend a "Strong Buy," two have a "Moderate Buy" rating, 15 give a "Hold" rating, and one suggests a "Strong Sell."
This configuration is slightly less bullish than three months before, with 22 analysts suggesting a "Strong Buy." Currently, NFLX is trading above the average analyst price target of $651.03.
On the date of publication, Sohini Mondal 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.
