Netflix Earnings Preview: Strong Results Expected on Solid Content Slate
Netflix (NFLX) is poised to release its fourth-quarter fiscal earnings after market close on Tuesday. Analysts anticipate resilient performance amidst a strong content lineup, including NFL games, the "Jake Paul vs. Mike Tyson" fight, and the resurgence of "Squid Game."
Revenue and Earnings Estimates
Consensus estimates from Bloomberg project:
* Revenue: $10.11 billion (Netflix guidance: $10.13 billion)
* Earnings Per Share: $4.18 (Netflix guidance: $4.23)
Subscriber Growth
Netflix expects to add 9.18 million net subscribers during Q4 2023, compared to 13.12 million in Q4 2022.
Expert Insights
Geetha Ranganathan, senior analyst at Bloomberg Intelligence, highlights Netflix's robust content offering as a key driver for the quarter. She anticipates strong subscriber momentum driven by live sports programming, notably the record-breaking Jake Paul vs. Mike Tyson event.
Price Hikes on the Horizon
Netflix has hinted at price increases in the US market. A potential boost in subscription revenue could offset concerns over a downward revision in its 2025 revenue outlook due to currency fluctuations.
Valuation Concerns
Analysts expect a downward adjustment to Netflix's revenue growth projections due to the strengthening dollar. A substantial price increase could counterbalance this, potentially occurring later this year.
The Future of Sports on Netflix
The recent debut of WWE Raw marks a shift for Netflix. Sports content could fuel further subscriber growth and retention, solidifying the platform's position in the competitive streaming landscape.
Disclaimer: This article provides information for educational and informational purposes only. It does not constitute financial advice and should not be construed as such.