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The company forecasts its first-quarter earnings to be $2.86 per share, suggesting a year-over-year decline of 23.7%.
The Zacks Consensus Estimate for earnings is currently pegged at $2.92 per share, down by a penny over the past 30 days. The figure indicates 22.13% decline from the year-ago quarter’s reported figure.
Netflix expects total revenues to increase 10.3% year over year to $7.903 billion. The consensus mark for first-quarter revenues is currently pegged at $7.90 billion, suggesting 10.3% growth from the figure reported in the year-ago quarter.
Netflix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same in the remaining one, the average surprise being 26.66%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Netflix has been witnessing sluggish subscriber growth in recent times, primarily due to rising competition and easing of coronavirus-induced social-distancing norms.
Moreover, Netflix’s decision to suspend operations in Russia due to the ongoing Russia-Ukraine conflict is likely to have negatively impacted subscriber growth rate in the to-be-reported quarter.
Netflix’s shares are down 41.9% year to date, underperforming the Zacks Broadcast Radio and Television industry’s decline of 25.6%.
Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney (DIS - Free Report) , HBO Max, Comcast’s (CMCSA - Free Report) Peacock, Paramount+, and Apple TV+ by Apple (AAPL - Free Report) .
Netflix’s closest competitor, Disney, benefits from the growing popularity of Disney+ owing to a strong content portfolio and a cheaper bundle offering.
Disney is also expanding into international markets. Disney+, as of Jan 1, 2022, had 129.8 million paid subscribers compared with 94.9 million as of Jan 2, 2021.
Comcast’s Peacock had 24.5 million monthly active accounts in the United States at the end of 2021. Moreover, original content from the likes of WWE and the NFL is expected to aid subscriber growth for Peacock’s premium service.
Apple’s streaming service, Apple TV+, is gaining recognition, with Ted Lasso winning multiple Emmy Awards and, most recently, CODA winning three Academy Awards. This is expected to boost Apple TV+’s viewership.
However, courtesy of its diversified content portfolio, attributable to heavy investments in the production and distribution of localized, foreign-language content and an expanding international footprint, Netflix is still dominating the streaming market.
The Zacks Consensus Estimate for paid memberships at the end of the period is pegged at 224.23 million, slightly lower than management’s expectation.
The Zacks Consensus Estimate for paid total streaming net membership addition is pegged at 2.393 million, slightly lower than Netflix’s expectation of 2.50 million for the to-be-reported quarter.
Netflix’s growing popularity in Asia Pacific (APAC) and Latin America (LATAM), thanks to its diversified content offerings in regional languages, is expected to have driven top-line growth.
The consensus mark for first-quarter 2022 APAC revenues is pegged at $911 million, indicating 19.6% growth from the figure reported in the year-ago quarter. Netflix’s plan to reduce prices in India is expected to have added a substantial user base in the to-be-reported quarter.
The Zacks Consensus Estimate for LATAM revenues is pegged at $954 million, suggesting almost 14% growth from the figure reported in the previous quarter.
Moreover, the consensus mark for Europe, Middle East & Africa revenues is pegged at $2.58 billion, suggesting 9.9% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for United States and Canada revenues stands at $3.43 billion, indicating 8.2% growth from the figure reported in the year-ago quarter.
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Netflix (NFLX) Set to Report Q1 Earnings: What to Expect?
Netflix (NFLX - Free Report) is set to report first-quarter 2022 results on Apr 19.
The company forecasts its first-quarter earnings to be $2.86 per share, suggesting a year-over-year decline of 23.7%.
The Zacks Consensus Estimate for earnings is currently pegged at $2.92 per share, down by a penny over the past 30 days. The figure indicates 22.13% decline from the year-ago quarter’s reported figure.
Netflix expects total revenues to increase 10.3% year over year to $7.903 billion. The consensus mark for first-quarter revenues is currently pegged at $7.90 billion, suggesting 10.3% growth from the figure reported in the year-ago quarter.
Netflix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same in the remaining one, the average surprise being 26.66%.
Netflix, Inc. Price and EPS Surprise
Netflix, Inc. price-eps-surprise | Netflix, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
Netflix has been witnessing sluggish subscriber growth in recent times, primarily due to rising competition and easing of coronavirus-induced social-distancing norms.
Moreover, Netflix’s decision to suspend operations in Russia due to the ongoing Russia-Ukraine conflict is likely to have negatively impacted subscriber growth rate in the to-be-reported quarter.
Netflix’s shares are down 41.9% year to date, underperforming the Zacks Broadcast Radio and Television industry’s decline of 25.6%.
Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney (DIS - Free Report) , HBO Max, Comcast’s (CMCSA - Free Report) Peacock, Paramount+, and Apple TV+ by Apple (AAPL - Free Report) .
Netflix’s closest competitor, Disney, benefits from the growing popularity of Disney+ owing to a strong content portfolio and a cheaper bundle offering.
Disney is also expanding into international markets. Disney+, as of Jan 1, 2022, had 129.8 million paid subscribers compared with 94.9 million as of Jan 2, 2021.
Comcast’s Peacock had 24.5 million monthly active accounts in the United States at the end of 2021. Moreover, original content from the likes of WWE and the NFL is expected to aid subscriber growth for Peacock’s premium service.
Apple’s streaming service, Apple TV+, is gaining recognition, with Ted Lasso winning multiple Emmy Awards and, most recently, CODA winning three Academy Awards. This is expected to boost Apple TV+’s viewership.
However, courtesy of its diversified content portfolio, attributable to heavy investments in the production and distribution of localized, foreign-language content and an expanding international footprint, Netflix is still dominating the streaming market.
This Zacks Rank #3 (Hold) company expects to end the first quarter of 2022 with 224.34 million paid subscribers globally, indicating growth of 8% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for paid memberships at the end of the period is pegged at 224.23 million, slightly lower than management’s expectation.
The Zacks Consensus Estimate for paid total streaming net membership addition is pegged at 2.393 million, slightly lower than Netflix’s expectation of 2.50 million for the to-be-reported quarter.
Netflix’s growing popularity in Asia Pacific (APAC) and Latin America (LATAM), thanks to its diversified content offerings in regional languages, is expected to have driven top-line growth.
The consensus mark for first-quarter 2022 APAC revenues is pegged at $911 million, indicating 19.6% growth from the figure reported in the year-ago quarter. Netflix’s plan to reduce prices in India is expected to have added a substantial user base in the to-be-reported quarter.
The Zacks Consensus Estimate for LATAM revenues is pegged at $954 million, suggesting almost 14% growth from the figure reported in the previous quarter.
Moreover, the consensus mark for Europe, Middle East & Africa revenues is pegged at $2.58 billion, suggesting 9.9% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for United States and Canada revenues stands at $3.43 billion, indicating 8.2% growth from the figure reported in the year-ago quarter.