Netflix Q4 Earnings Preview: Strong Results Expected Amidst Content Success and Sports Surge
Earnings Date: Tuesday after market close
Analyst Estimates:
* Revenue: $10.11 billion (Netflix guidance: $10.13 billion)
* Earnings per Share (EPS): $4.18 (Netflix guidance: $4.23)
* Net Subscriber Additions: 9.18 million
Key Factors to Watch:
* Strong Content Slate: Netflix ended the year with successful NFL games, the "Jake Paul vs. Mike Tyson" boxing match, and the return of "Squid Game."
* Sports Impact: The addition of live sports, including WWE Raw, is expected to drive subscriber growth and retention.
* Price Hikes: Netflix is expected to announce a price increase to offset slowing revenue growth.
* Ad Revenue Growth: The ad-supported tier has reached 70 million global monthly active users, contributing to Netflix's revenue diversification.
Analyst Insight:
Geetha Ranganathan, senior analyst at Bloomberg Intelligence, highlights the strong expectations for Netflix's Q4 results due to its exceptional content slate and the popularity of sports programming on the platform. She predicts that Netflix will exceed the 10 million subscriber addition mark.
Valuation Concerns:
Analysts anticipate a downward revision to Netflix's 2025 revenue outlook due to the strengthening dollar, leading to concerns about the company's valuation. However, Ranganathan suggests that Netflix may offset this with a significant price increase.
Contributor:
Alexandra Canal, Senior Reporter at Yahoo Finance