Netflix Earnings Preview: Waiting on a Pullback

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Netflix Inc ข่าว

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Stocks Analysis by Brian Gilmartin covering: Netflix Inc. Read Brian Gilmartin's latest article on Investing.com

) is scheduled to report their Q2 ’24 financial results after the bell on Thursday, July 18 ’24, with street consensus expecting:Operating income: $2.43 billion for expected 33% y-o-y growth;Netflix’s story the last few quarters has been subscriber growth has come in much better-than-expected, even though management has said they are going to stop reporting subscriber and ARPU metrics.In Q4 ’23, 13.12 million new subscribers were added versus the 8.

Netflix guided to 13% – 15% revenue growth in for full-year ’24, which is also slightly conservative to consensus which stands today at an expected 15%.The trends in EPS estimates are quite positive, and to a much higher magnitude than revenue estimates, and that’s because of NFLX’s operating margin increase.

Morningstar’s fair value estimate for NFLX is $440, very close to it’s current 200-week moving average of $447 – $450.$700 is a big level for Netflix as that price level was the mid-November ’21 high before the stock fell to $162 by mid-2022. However, the momentum in EPS and revenue estimates, and NFLX’s changing business model to include live sporting events, is quite important. Netflix announced during the 2nd quarter that they will be carrying two live NFL games on Christmas Day ’24, which will likely only help advertising.

The 200-week moving average for NFLX is $447 – $450 area. That’s a price level where more would be bought for client accounts.

 

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