Netflix Anticipated to Report Strong Fiscal Q4 Earnings Amid Content Success
Analysts' Expectations:
* Revenue: $10.11 billion (Netflix guidance: $10.13 billion) vs. $8.83 billion in Q4 2023
* Earnings per Share: $4.18 (Netflix guidance: $4.23) vs. $2.11 in Q4 2023
* Net Subscriber Additions: 9.18 million vs. 13.12 million in Q4 2023
Content Success Drives Growth
Netflix ended the year with a strong slate of content, including NFL games, the "Jake Paul vs. Mike Tyson" match, and the return of "Squid Game." This has set the stage for a successful fiscal fourth quarter.
Sports Programming Draws Viewers
Live sports programming has dominated Netflix's platform, with the Jake Paul and Mike Tyson match attracting over 108 million viewers globally and the NFL games averaging around 30 million viewers. This success is poised to drive subscriber growth.
WWE Debut Expected to Fuel Retention
The recent debut of WWE Raw on Netflix is expected to further enhance subscriber retention and momentum. Analysts anticipate substantial subscriber additions as a result.
Upcoming Price Hikes
Despite flat year-over-year engagement levels, Netflix is expected to raise prices. The company last raised prices in 2022 and has yet to increase the cost of its ad-supported offering.
Valuation Concerns
Analysts predict a downward revision to Netflix's 2025 revenue outlook due to currency headwinds. However, this may be offset by a significant price increase in the coming year.
Conclusion
Analysts anticipate strong earnings from Netflix in the fiscal fourth quarter, driven by successful content, live sports programming, and ongoing subscriber growth. Price hikes loom on the horizon as the company seeks to maintain its strong position in the streaming industry.