Earnings
Analysts are projecting Netflix to report adjusted earnings of $2.22 per share, a significant increase from 12 cents per share the previous year. In the past four quarters, Netflix has accumulated $4.5 billion in profit while its competitors have struggled.
Revenue
The FactSet consensus estimates Netflix’s revenue to be $8.72 billion, up from $7.85 billion the previous year.
Stock Movement
Netflix’s stock has seen a 36% increase in the last 12 months, outperforming the S&P 500 which has grown by 21% during the same period.
Analyst Perspective
Out of the 50 analysts covering Netflix, 30 rate the stock as a buy, 17 rate it as a hold, and three recommend selling. The average price target is $492.79.
What to Watch For
Analysts are predicting significant growth for Netflix’s new advertising-supported service. Oppenheimer analyst Jason Helfstein believes there is plenty of room for subscription growth in 2024. He raised his price target on Netflix shares to $600 and increased his estimates for net additions in the fourth quarter to over 10 million.
A recent survey by Cowen revealed that approximately half of advertisers plan to spend on Netflix in 2024, indicating strong interest in the platform.
Additionally, investors should pay attention to updates on Netflix’s content strategy. The company’s tiered-pricing strategy realignment has been successful, and it is expected to continue bringing on popular TV series like “Suits.”
Netflix’s fourth-quarter results hold great potential for the company’s continued success and growth. Analysts are optimistic about the possibilities and eagerly await the release of the financial report.