We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Netflix expects its fourth-quarter earnings to be $2.15 per share, significantly up from 12 cents reported in the year-ago quarter.
The Zacks Consensus Estimate for earnings is currently pegged at $2.20 per share, up 0.9% over the past 30 days. The figure indicates an increase of 1,733.3% from the year-ago quarter.
NFLX expects total revenues to increase 10.7% year over year to $8.69 billion. The consensus mark for fourth-quarter revenues is currently pegged at $8.72 billion, suggesting 11.01% 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 12.16%.
Let’s see how things are shaping up for this announcement.
Netflix expects paid net additions to be similar to third-quarter 2023. At the end of the third quarter, Netflix had 247.15 million paid subscribers globally, up 10.8% year over year.
Global ARM in the fourth quarter is expected to be roughly flat year over year, primarily due to limited price increases over the last 18 months.
In the third quarter, Netflix ended password sharing in India, announcing that only members of a household will be able to access a single account.
Starting Nov 1, Netflix discontinued its free mobile plan in Kenya, where users were able to access 25% of its content without a subscription for two years. This change may have resulted in a rise in the number of paid subscriptions in the Europe, Middle East and Africa (EMEA) region, ultimately boosting NFLX's revenues in the to-be-reported quarter.
Ad-supported low-priced plans are expected to have a modest incremental benefit toward top-line growth in the to-be-reported quarter.
Netflix’s sprawling games portfolio is also expected to have boosted user engagement in the to-be-reported quarter. In the fourth quarter, the company started offering the highly popular video game trilogy, Grand Theft Auto: The Trilogy – The Definitive Edition by Take-Two Interactive (TTWO - Free Report) , to strengthen its position in the gaming industry. The trilogy is accessible to NFLX’s subscribers on the App Store, Google Play and within the Netflix mobile app.
The addition of Grand Theft Auto: The Trilogy is expected to have boosted the company's subscriber base and offerings in the to-be-reported quarter.
This Zacks Rank #2 (Buy) company is likely to have benefited from its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized and foreign-language content. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, stiff competition from streaming services like Disney’s (DIS - Free Report) Disney+, HBO Max, 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 fourth quarter of 2023. In the fourth quarter, Netflix released the live-action adaptation of Yu Yu Hakusho featuring Takumi Kitamura and the sci-fi film Rebel Moon — Part 1: A Child of Fire, which is directed, written and produced by Zack Snyder.
Moreover, the company launched a series named Pokémon Concierge in collaboration with The Pokémon Company. The series debuted globally on Dec 27, 2023.
Shares of the company have gained 1% in the past six months against the Zacks Consumer Discretionary sector’s and Apple’s decline of 0.5% and 5.5%, respectively. Shares of Netflix have underperformed Disney’s return of 5.1% in the past six months.
Top-Line Growth Estimates Positive in Q4
The Zacks Consensus Estimate for paid total streaming net membership additions is pegged at 8.967 million. Netflix gained 4.549 million paid subscribers globally in the year-ago quarter.
The consensus mark for fourth-quarter 2023 Asia-Pacific revenues is pegged at $954 million, indicating 7% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Latin America revenues is pegged at $1.135 billion, suggesting a rise of 14% from the figure reported in the previous quarter.
Moreover, the consensus mark for EMEA revenues is pegged at $2.715 billion, suggesting an increase of 17.8% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for the United States and Canada revenues is pegged at $3.903 billion, indicating a 9.7% rise from the figure reported in the year-ago quarter.
Upcoming Earnings
Apple and Disney are set to report first-quarter fiscal 2024 results on Feb 1 and Feb 7, respectively.
Image: Bigstock
Netflix (NFLX) Gears Up for Q4 Earnings: What's in the Cards?
Netflix (NFLX - Free Report) is set to report fourth-quarter 2023 results on Jan 23.
Netflix expects its fourth-quarter earnings to be $2.15 per share, significantly up from 12 cents reported in the year-ago quarter.
The Zacks Consensus Estimate for earnings is currently pegged at $2.20 per share, up 0.9% over the past 30 days. The figure indicates an increase of 1,733.3% from the year-ago quarter.
NFLX expects total revenues to increase 10.7% year over year to $8.69 billion. The consensus mark for fourth-quarter revenues is currently pegged at $8.72 billion, suggesting 11.01% 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 12.16%.
Let’s see how things are shaping up for this announcement.
Netflix, Inc. Price and EPS Surprise
Netflix, Inc. price-eps-surprise | Netflix, Inc. Quote
Factors to Consider
Netflix expects paid net additions to be similar to third-quarter 2023. At the end of the third quarter, Netflix had 247.15 million paid subscribers globally, up 10.8% year over year.
Global ARM in the fourth quarter is expected to be roughly flat year over year, primarily due to limited price increases over the last 18 months.
In the third quarter, Netflix ended password sharing in India, announcing that only members of a household will be able to access a single account.
Starting Nov 1, Netflix discontinued its free mobile plan in Kenya, where users were able to access 25% of its content without a subscription for two years. This change may have resulted in a rise in the number of paid subscriptions in the Europe, Middle East and Africa (EMEA) region, ultimately boosting NFLX's revenues in the to-be-reported quarter.
Ad-supported low-priced plans are expected to have a modest incremental benefit toward top-line growth in the to-be-reported quarter.
Netflix’s sprawling games portfolio is also expected to have boosted user engagement in the to-be-reported quarter. In the fourth quarter, the company started offering the highly popular video game trilogy, Grand Theft Auto: The Trilogy – The Definitive Edition by Take-Two Interactive (TTWO - Free Report) , to strengthen its position in the gaming industry. The trilogy is accessible to NFLX’s subscribers on the App Store, Google Play and within the Netflix mobile app.
The addition of Grand Theft Auto: The Trilogy is expected to have boosted the company's subscriber base and offerings in the to-be-reported quarter.
This Zacks Rank #2 (Buy) company is likely to have benefited from its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized and foreign-language content. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, stiff competition from streaming services like Disney’s (DIS - Free Report) Disney+, HBO Max, 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 fourth quarter of 2023. In the fourth quarter, Netflix released the live-action adaptation of Yu Yu Hakusho featuring Takumi Kitamura and the sci-fi film Rebel Moon — Part 1: A Child of Fire, which is directed, written and produced by Zack Snyder.
Moreover, the company launched a series named Pokémon Concierge in collaboration with The Pokémon Company. The series debuted globally on Dec 27, 2023.
Shares of the company have gained 1% in the past six months against the Zacks Consumer Discretionary sector’s and Apple’s decline of 0.5% and 5.5%, respectively. Shares of Netflix have underperformed Disney’s return of 5.1% in the past six months.
Top-Line Growth Estimates Positive in Q4
The Zacks Consensus Estimate for paid total streaming net membership additions is pegged at 8.967 million. Netflix gained 4.549 million paid subscribers globally in the year-ago quarter.
The consensus mark for fourth-quarter 2023 Asia-Pacific revenues is pegged at $954 million, indicating 7% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Latin America revenues is pegged at $1.135 billion, suggesting a rise of 14% from the figure reported in the previous quarter.
Moreover, the consensus mark for EMEA revenues is pegged at $2.715 billion, suggesting an increase of 17.8% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for the United States and Canada revenues is pegged at $3.903 billion, indicating a 9.7% rise from the figure reported in the year-ago quarter.
Upcoming Earnings
Apple and Disney are set to report first-quarter fiscal 2024 results on Feb 1 and Feb 7, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.