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The company expects its second-quarter earnings to be $2.84 per share, suggesting a year-over-year decline of 11.25%.
The Zacks Consensus Estimate for earnings is currently pegged at $2.81 per share, unchanged over the past 30 days. The figure indicates a 12.19% decline from the year-ago quarter.
Netflix expects total revenues to increase 3.4% year over year to $8.242 billion. The consensus mark for second-quarter revenues is currently pegged at $8.26 billion, suggesting 3.63% growth from the figure reported in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, the average negative surprise being 3.86%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Netflix’s second-quarter 2023 results are expected to reflect the impact of paid sharing launch in the United States. The company launched its paid-sharing model in the United States on May 23, notifying members that their accounts cannot be shared for free with users outside their residences.
Moreover, ad-supported low-priced plans are expected to have a modest incremental benefit toward top-line growth in the to-be-reported quarter. The company’s sprawling games portfolio is also expected to have provided a boost to user engagement in the to-be-reported quarter.
Netflix, which currently has a Zacks Rank #3 (Hold), is expected to have benefited from its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nevertheless, stiff competition from streaming services like Disney’s (DIS - Free Report) Disney+, HBO Max, Comcast’s (CMCSA - Free Report) Peacock, Paramount+, Apple’s (AAPL - Free Report) Apple TV+, and Amazon has been a headwind for Netflix. It is also facing competition for consumer time from linear TV, YouTube, short-form entertainment like TikTok, and gaming.
Nevertheless, Netflix’s strong content portfolio is expected to have helped keep the subscriber base intact in the second quarter of 2023.
The company’s shares have gained 52.7% year to date, outperforming the Zacks Broadcast Radio and Television industry’s growth of 31.9%. It has also outperformed Apple, Comcast and Disney.
Shares of Apple, Comcast and Disney have returned 46.6%, 21.7% and 4.1%, respectively.
Top-Line Growth Estimates Positive in Q2
The Zacks Consensus Estimate for paid total streaming net membership additions is pegged at 1.609 million. Netflix gained 1.75 million paid subscribers globally in the first quarter of 2022.
The consensus mark for second-quarter 2023 APAC revenues is pegged at $959 million, indicating 5.6% growth from the figure reported in the year-ago quarter.
Our estimate for Asia-Pacific is pegged at $926.7 million, indicating 2.1% year-over-year growth.
The Zacks Consensus Estimate for Latin America (LATAM) revenues is pegged at $1.08 billion, suggesting 4.6% growth from the figure reported in the previous quarter.
Our estimate for LATAM revenues is pegged at $1.07 billion, indicating 3.9% year-over-year growth.
Moreover, the consensus mark for Europe, Middle East & Africa revenues is pegged at $2.59 billion, suggesting 5.3% growth from the figure reported in the year-ago quarter.
Our estimate for Europe, Middle East & Africa revenues is pegged at $2.51 billion, suggesting 2% year-over-year growth.
The Zacks Consensus Estimate for the United States and Canada revenues stands at $3.65 billion, indicating 3.1% growth from the figure reported in the year-ago quarter.
Our estimate for the United States and Canada revenues stands at $3.71 billion, indicating 4.8% year-over-year growth.
Upcoming Earnings
Comcast is set to report its second-quarter 2023 results on Jul 27, while Apple’s and Disney’s third-quarter fiscal 2023 results are set for Aug 3 and 9, respectively.
Image: Bigstock
Netflix (NFLX) Gears Up for Q2 Earnings: What's in the Cards?
Netflix (NFLX - Free Report) is set to report its second-quarter 2023 results on Jul 19.
The company expects its second-quarter earnings to be $2.84 per share, suggesting a year-over-year decline of 11.25%.
The Zacks Consensus Estimate for earnings is currently pegged at $2.81 per share, unchanged over the past 30 days. The figure indicates a 12.19% decline from the year-ago quarter.
Netflix expects total revenues to increase 3.4% year over year to $8.242 billion. The consensus mark for second-quarter revenues is currently pegged at $8.26 billion, suggesting 3.63% growth from the figure reported in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, the average negative surprise being 3.86%.
Netflix, Inc. Price, Consensus and EPS Surprise
Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
Netflix’s second-quarter 2023 results are expected to reflect the impact of paid sharing launch in the United States. The company launched its paid-sharing model in the United States on May 23, notifying members that their accounts cannot be shared for free with users outside their residences.
Moreover, ad-supported low-priced plans are expected to have a modest incremental benefit toward top-line growth in the to-be-reported quarter. The company’s sprawling games portfolio is also expected to have provided a boost to user engagement in the to-be-reported quarter.
Netflix, which currently has a Zacks Rank #3 (Hold), is expected to have benefited from its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nevertheless, stiff competition from streaming services like Disney’s (DIS - Free Report) Disney+, HBO Max, Comcast’s (CMCSA - Free Report) Peacock, Paramount+, Apple’s (AAPL - Free Report) Apple TV+, and Amazon has been a headwind for Netflix. It is also facing competition for consumer time from linear TV, YouTube, short-form entertainment like TikTok, and gaming.
Nevertheless, Netflix’s strong content portfolio is expected to have helped keep the subscriber base intact in the second quarter of 2023.
The company’s shares have gained 52.7% year to date, outperforming the Zacks Broadcast Radio and Television industry’s growth of 31.9%. It has also outperformed Apple, Comcast and Disney.
Shares of Apple, Comcast and Disney have returned 46.6%, 21.7% and 4.1%, respectively.
Top-Line Growth Estimates Positive in Q2
The Zacks Consensus Estimate for paid total streaming net membership additions is pegged at 1.609 million. Netflix gained 1.75 million paid subscribers globally in the first quarter of 2022.
The consensus mark for second-quarter 2023 APAC revenues is pegged at $959 million, indicating 5.6% growth from the figure reported in the year-ago quarter.
Our estimate for Asia-Pacific is pegged at $926.7 million, indicating 2.1% year-over-year growth.
The Zacks Consensus Estimate for Latin America (LATAM) revenues is pegged at $1.08 billion, suggesting 4.6% growth from the figure reported in the previous quarter.
Our estimate for LATAM revenues is pegged at $1.07 billion, indicating 3.9% year-over-year growth.
Moreover, the consensus mark for Europe, Middle East & Africa revenues is pegged at $2.59 billion, suggesting 5.3% growth from the figure reported in the year-ago quarter.
Our estimate for Europe, Middle East & Africa revenues is pegged at $2.51 billion, suggesting 2% year-over-year growth.
The Zacks Consensus Estimate for the United States and Canada revenues stands at $3.65 billion, indicating 3.1% growth from the figure reported in the year-ago quarter.
Our estimate for the United States and Canada revenues stands at $3.71 billion, indicating 4.8% year-over-year growth.
Upcoming Earnings
Comcast is set to report its second-quarter 2023 results on Jul 27, while Apple’s and Disney’s third-quarter fiscal 2023 results are set for Aug 3 and 9, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.