Netflix (NFLX - Free Report) is set to report third-quarter 2020 results on Oct 20.
The company forecasts third-quarter earnings to be $2.09 per share, implying year-over-year growth of 42.2%.
The Zacks Consensus Estimate is currently pegged at $2.12 per share, up 0.5% over the past 30 days. Moreover, the figure indicates 44.2% growth from the year-ago quarter’s reported figure.
Further, total revenues are anticipated to be $6.33 billion, up 20.6% year over year. The consensus mark for third-quarter revenues is currently pegged at $6.38 billion, suggesting 21.7% growth from the figure reported in the year-earlier quarter.
Notably, the company beat the Zacks Consensus Estimate in two of the trailing four quarters, missing in the other two, the average surprise being 43.5%.
Let’s see how things are shaping up for this announcement.
Coronavirus Outbreak Likely to Aid Subscriber Growth
Increased consumption of media content on the Internet as more and more people were compelled to stay at home due to coronavirus-induced social distancing and lockdowns is expected to have benefited Netflix’s third-quarter top line. The company’s solid content portfolio is also expected to have aided it in gaining new subscribers.
Netflix is ahead in the streaming race despite increased competition from the launch of new services like Disney+ from Disney (DIS - Free Report) , HBO Max, Peacock and Apple TV+ from Apple (AAPL - Free Report) , as well as existing services like Amazon (AMZN - Free Report) prime video.
Courtesy of its diversified content portfolio, which is attributable to Netflix’s heavy investments in production and distribution of localized, foreign-language content and an expanding international footprint, the company is expected to have hugely benefited from this upswing.
Netflix expects its paid-subscriber addition to be 2.50 million in the to-be-reported quarter. This Zacks Rank #3 (Hold) company projects to have 195.45 million paid subscribers globally, up 23.4% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for paid total streaming net membership addition is pegged at 3.10 million, down from 10.09 million added in the previous quarter.
The consensus mark for Asia Pacific (APAC) revenues are pegged at $623 million, indicating 9.5% growth from the figure reported in the previous quarter.
The Europe, Middle East & Africa (EMEA) revenues are pegged at $1.97 billion, suggesting 4.1% growth from the figure reported in the previous quarter.
Moreover, the consensus mark for United States and Canada (UCAN) revenues are $2.91 billion, indicating 2.5% growth from the figure reported in the previous quarter.
Further, the Zacks Consensus Estimate for Latin America (LATAM) is pegged at $833 million, suggesting 6.1% growth from the figure reported in the previous quarter.
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