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Netflix Q1 Earnings Preview: Subscriber Growth, Potential Price Increase, Ad-Tier Plan And More On What Wall Street Expects
Streaming giant Netflix Inc (NASDAQ:NFLX) is set to report first-quarter financial results on Thursday, April 18, 2024, after market close.
Here's a look at earnings estimates, what analysts are saying and key items to watch.
Earnings Estimates: Analysts estimate Netflix will report first-quarter revenue of $9.275 billion, according to data from Benzinga Pro.
The streaming company reported revenue of $8.162 billion in last year's first quarter. The company has beaten Street estimates in two of the last four quarters, including the most recently reported fourth quarter.
Netflix said during its fourth-quarter earnings report that it expects first-quarter revenue to be $9.24 billion, which would be up 13.2% year-over-year.
Analysts expect the company to report first-quarter earnings per share of $4.52, up from $2.88 reported in the prior year's first quarter. The company has beaten earnings per share estimates from analysts in three of the last four quarters.
Netflix guidance calls for first-quarter earnings per share of $4.49.
The streaming company reported 13.12 million net subscriber adds in the fourth quarter, taking its total to 260.28 million. Netflix guidance said net subscriber adds would be down sequentially, but should come in higher than the 1.8 million net adds reported in the first quarter of 2023.
What Analysts Are Saying: The ad-supported plan and paid sharing crackdowns from Netflix could lead to more upside, according to Macquarie analyst Tim Nollen.
The analyst, who has an Outperform rating on the stock, said Netflix could have more upside when comparing his original estimates on ad-tier and paid sharing to where the company is now.
"Netflix's password-sharing crackdown on the heels of its ad tier launch helped drive nearly 30m sub ...