Netflix Set to Report Strong Q4 Earnings: Analyst Expectations and Key Trends
Fiscal Q4 Earnings Release:
* Expected Release: Tuesday, after market close
Analyst Consensus Estimates (Bloomberg):
Revenue:
* $10.11 billion (Netflix guidance: $10.13 billion)
* Q4 2023: $8.83 billion
Earnings per Share:
* $4.18 (Netflix guidance: $4.23)
* Q4 2023: $2.11
Net Subscriber Additions:
* 9.18 million
* Q4 2023: 13.12 million
Key Trends and Drivers:
* Strong Content Pipeline: Back-to-back NFL games, "Jake Paul vs. Mike Tyson" boxing match, "Squid Game" return
* Live Sports Dominance: Jake Paul and Mike Tyson match became the most-streamed sporting event ever, NFL games averaged 30 million viewers, most-watched Christmas Day game ever
* Sports' Impact on Future Growth: Debut of WWE Raw expected to drive subscriber momentum
* Ad Tier Success: Ad tier reaches 70 million monthly active users
* Price Hikes Looming: Potential price increases anticipated in the US market
* Valuation Concerns: Downward revision to 2025 revenue outlook expected due to strengthening dollar
Analyst Insights:
"There are very high expectations going into this quarter," said Geetha Ranganathan, senior analyst at Bloomberg Intelligence. "But it's really the perfect setup for Netflix."
"This is really the big shift we're going to see this quarter," added Ranganathan. "That's going to drive subscriber momentum for Netflix in a big way. We're expecting well over 10 million subscriber additions."
Disclaimer: The information and opinions contained in this article are provided for informational purposes only and should not be construed as investment advice.