What You Should Know Ahead of Netflix’s Earnings Report Today
Netflix is set to release its Q1 earnings report this afternoon, marking the start of the tech earnings season. The streaming giant expects modest growth, and its guidance aligns with Wall Street estimates. Investors will be interested in updates on the progress of Netflix’s new ad-supported subscriber tier, as well as its plans to address password sharing. Analysts are also likely to inquire about the company’s recent decision to lower prices in smaller global markets.
Netflix’s Earnings Report Today
Here are the key details:
- March Quarter Guidance: Revenue of $8.2 billion, a 4% increase; net income of $1.3 billion; earnings per share of $2.82; operating income of $1.6 billion; and operating margin of 19.9%. The company expects “positive” paid net subscriber adds.
- March Quarter Consensus Estimates: According to FactSet, revenue is estimated to be $8.2 billion, with earnings per share of $2.86 and paid net subscriber additions of 2.26 million.
- June Quarter Consensus Estimates: Revenue is projected to be $8.5 billion, with net income of $1.4 billion, earnings per share of $3.07, and paid net subscriber adds of 3.7 billion.
- Noteworthy: This will be the first quarter without Netflix founder Reed Hastings on the post-earnings call since he moved to an executive chairman role. Additionally, the company has ceased providing specific subscriber growth forecasts.
The earnings call will be available for streaming on YouTube at 6 p.m. Eastern time.