Netflix Reports Earnings Today. Growth Is a Risk.

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Investors expect Netflix to give updates about its ad subscription plan and pricing strategy after the market close.

Investors are expecting Netflix to give updates about the progress of its ad subscription plan and pricing strategy after the market close.For the third quarter, the consensus for Netflix is for the company to report revenue of $8.54 billion with earnings per share of $3.49 and 6.1 million in paid net add subscriptions. Analysts’ estimates for the current quarter are EPS of $2.17, net adds of 7.7 million, and $8.78 billion in revenue.

Last week, Wolfe analyst Peter Supino lowered his rating to Peer Perform from Outperform for Netflix and removed his $500 price target on the stock, citing worries about growth in the coming years. “While Netflix is on course to build a massive advertising business for the long-term, we have rising concern about 2024-25 growth forecasts,” he wrote.

The analyst said revisions in pricing could be a headwind for Netflix. The streaming video company removed its lowest-tier ad free subscription plan of $9.99 a month for new subscribers back in July. Netflix shares have fallen 21% over the last three months. In September, investors were disappointed by what some analysts interpreted as cautious remarks from a company executive about profitability and growth.

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