Netflix (NFLX) Reports Earnings Tomorrow: What To Expect

Streaming video giant Netflix (NASDAQ: NFLX) will be reporting earnings this Tuesday after the bell. Here’s what to expect.

Netflix met analysts’ revenue expectations last quarter, reporting revenues of $11.08 billion, up 15.9% year on year. It was a satisfactory quarter for the company, with EPS guidance for next quarter topping analysts’ expectations but revenue in line with analysts’ estimates. It reported 310.6 million users, up 11.9% year on year.

Is Netflix a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Netflix’s revenue to grow 17.3% year on year to $11.52 billion, improving from the 15% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.97 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Netflix has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.6% on average.

With Netflix being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for consumer internet stocks. However, the whole sector has faced a sell-off over the last month with stocks in Netflix’s peer group down 6% on average. Netflix is down 2.3% during the same time and is heading into earnings with an average analyst price target of $1,350 (compared to the current share price of $1,200).

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