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The Q3 cycle has officially gotten underway, with the big banks fully kicking off the cycle last week on Friday. And this week, we’ll have a flurry of reports, with even more slated to come in the following periods.
It’s set up to be another critical earnings cycle, particularly following the market’s already impressive run year-to-date and lingering uncertainties weighing on investors' minds. Nonetheless, we’ve continued to elude the feared ‘earnings apocalypse’ many had feared, helping to inject positive sentiment throughout 2023.
Regarding this week’s slate, a few heavy hitters are scheduled to report, including streaming titan Netflix (NFLX - Free Report) and Tesla (TSLA - Free Report) , the undisputed leader among EVs. But how do expectations stack up for the two heavyweights heading into their releases? Let’s take a closer look.
Netflix
Netflix shares have seen notable buying pressure in 2023 following a rough showing last year, up roughly 20% and outperforming the S&P 500’s 15% gain. The company’s quarterly releases have regularly brought volatility to shares, as illustrated below.
Image Source: Zacks Investment Research
Subscriber (or membership) additions are the key metric investors will be closely watching for in the release, an area that Netflix crushed in its latest release. For the quarter to be reported, the Zacks Consensus Estimate for Paid Net Membership additions stands at 5.8 million, notably above the year-ago figure of 2.4 million.
It’s worth noting that the company’s recent crackdown on password sharing has helped grow its subscribers significantly, as reflected by its most recent subscribers beat. As shown below, the company has exceeded the Zacks Consensus Estimate for Paid Net Membership Additions in four of its last six releases.
Image Source: Zacks Investment Research
For the company’s upcoming release, Netflix expects revenue of $8.5 billion, reflecting year-over-year growth of 7%. As noted in its latest call, management expects revenue growth to accelerate further in Q4 as Netflix continues to monetize account sharing and improve its advertising revenue.
Analysts have shown light positivity for the release, with the $3.47 Zacks Consensus EPS Estimate up +1% over the last several months and reflecting year-over-year growth of 12%. Netflix will reveal its quarterly results on Wednesday, October 18th, after the market’s close.
Image Source: Zacks Investment Research
Tesla
Like NFLX, Tesla has seen volatility surrounding its quarterly releases in 2023, as shown below. Nonetheless, the company’s +100% gain has crushed the general market, rewarding investors handsomely.
Image Source: Zacks Investment Research
The EV leader revealed that it produced over 430,000 vehicles and delivered roughly 435,000 throughout Q3, reflecting a decline from the prior quarter. The company’s 2023 volume target of 1.8 million vehicles has remained unchanged, though, a critical factor to note.
Tesla has consistently exceeded our consensus delivery expectations as of late.
Image Source: Zacks Investment Research
The company has seen negative revisions for the release, with the $0.73 Zacks Consensus EPS Estimate down -7.6% over the last several months and reflecting a year-over-year decline of -30%. Our consensus revenue estimate stands at $24.4 billion, 13% higher than the year-ago period.
Image Source: Zacks Investment Research
In addition, it’ll be interesting to see how recent price cuts to EVs will affect quarterly results, as the company has consistently slashed prices throughout 2023. Tesla will report on Wednesday, October 18th, after the market’s close.
Bottom Line
The Q3 cycle will shift into a much higher gear this week following ‘Big Bank Friday,’ with a full slate of companies on deck to report in the coming weeks. It’s undoubtedly another critical round of earnings, with investors remaining optimistic for the market’s rally to continue into year-end.
And this week, two big reports to watch out for include none other than Netflix (NFLX - Free Report) and Tesla (TSLA - Free Report) . Both companies will report this Wednesday after the market’s close.
Regarding Netflix, investors will continue to focus on subscriber additions, particularly following the company’s recent success in its password-sharing crackdown efforts. Concerning Tesla, investors will be closely tuned into how recent price cuts have affected margins and top-line performance.
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Tesla & Netflix Earnings: What to Expect
The Q3 cycle has officially gotten underway, with the big banks fully kicking off the cycle last week on Friday. And this week, we’ll have a flurry of reports, with even more slated to come in the following periods.
It’s set up to be another critical earnings cycle, particularly following the market’s already impressive run year-to-date and lingering uncertainties weighing on investors' minds. Nonetheless, we’ve continued to elude the feared ‘earnings apocalypse’ many had feared, helping to inject positive sentiment throughout 2023.
Regarding this week’s slate, a few heavy hitters are scheduled to report, including streaming titan Netflix (NFLX - Free Report) and Tesla (TSLA - Free Report) , the undisputed leader among EVs. But how do expectations stack up for the two heavyweights heading into their releases? Let’s take a closer look.
Netflix
Netflix shares have seen notable buying pressure in 2023 following a rough showing last year, up roughly 20% and outperforming the S&P 500’s 15% gain. The company’s quarterly releases have regularly brought volatility to shares, as illustrated below.
Image Source: Zacks Investment Research
Subscriber (or membership) additions are the key metric investors will be closely watching for in the release, an area that Netflix crushed in its latest release. For the quarter to be reported, the Zacks Consensus Estimate for Paid Net Membership additions stands at 5.8 million, notably above the year-ago figure of 2.4 million.
It’s worth noting that the company’s recent crackdown on password sharing has helped grow its subscribers significantly, as reflected by its most recent subscribers beat. As shown below, the company has exceeded the Zacks Consensus Estimate for Paid Net Membership Additions in four of its last six releases.
Image Source: Zacks Investment Research
For the company’s upcoming release, Netflix expects revenue of $8.5 billion, reflecting year-over-year growth of 7%. As noted in its latest call, management expects revenue growth to accelerate further in Q4 as Netflix continues to monetize account sharing and improve its advertising revenue.
Analysts have shown light positivity for the release, with the $3.47 Zacks Consensus EPS Estimate up +1% over the last several months and reflecting year-over-year growth of 12%. Netflix will reveal its quarterly results on Wednesday, October 18th, after the market’s close.
Image Source: Zacks Investment Research
Tesla
Like NFLX, Tesla has seen volatility surrounding its quarterly releases in 2023, as shown below. Nonetheless, the company’s +100% gain has crushed the general market, rewarding investors handsomely.
Image Source: Zacks Investment Research
The EV leader revealed that it produced over 430,000 vehicles and delivered roughly 435,000 throughout Q3, reflecting a decline from the prior quarter. The company’s 2023 volume target of 1.8 million vehicles has remained unchanged, though, a critical factor to note.
Tesla has consistently exceeded our consensus delivery expectations as of late.
Image Source: Zacks Investment Research
The company has seen negative revisions for the release, with the $0.73 Zacks Consensus EPS Estimate down -7.6% over the last several months and reflecting a year-over-year decline of -30%. Our consensus revenue estimate stands at $24.4 billion, 13% higher than the year-ago period.
Image Source: Zacks Investment Research
In addition, it’ll be interesting to see how recent price cuts to EVs will affect quarterly results, as the company has consistently slashed prices throughout 2023. Tesla will report on Wednesday, October 18th, after the market’s close.
Bottom Line
The Q3 cycle will shift into a much higher gear this week following ‘Big Bank Friday,’ with a full slate of companies on deck to report in the coming weeks. It’s undoubtedly another critical round of earnings, with investors remaining optimistic for the market’s rally to continue into year-end.
And this week, two big reports to watch out for include none other than Netflix (NFLX - Free Report) and Tesla (TSLA - Free Report) . Both companies will report this Wednesday after the market’s close.
Regarding Netflix, investors will continue to focus on subscriber additions, particularly following the company’s recent success in its password-sharing crackdown efforts. Concerning Tesla, investors will be closely tuned into how recent price cuts have affected margins and top-line performance.