Netflix NFLX is gearing up to unveil its first-quarter 2024 results on April 18.
Projections indicate an expected earnings growth of 55.9% year over year, amounting to $4.49 per share or a 12% rise on a foreign-exchange neutral basis.
The Zacks Consensus Estimate currently stands at $4.49 per share, standing firm over the past month.
In terms of revenue, Netflix is eyeing a 13.2% year-over-year increase to $9.24 billion. The consensus estimate for revenues in the first quarter is at $9.26 billion, projecting a 13.43% growth compared to the previous year.
Netflix’s track record shows beating the Zacks Consensus Estimate in three out of the last four quarters, albeit with an average negative surprise of 5.43% in the remaining quarter.
Lurking beneath the surface, a storm may be brewing as we approach this much-anticipated reveal.
Netflix, Inc. Price and EPS Surprise
Where will the tale of Netflix’s stock performance steer us next?
Netflix, Inc. price-eps-surprise | Netflix, Inc. Quote
Factors Driving the Narrative
Netflix foresees a dip in paid net sub additions for the first quarter of 2024 compared to the previous one, but a 1.8 million upward trend from the prior year.
Global ARM is expected to trend upwards year over year in the first quarter.
With the unveiling of ad-supported low-priced plans and a flourishing games portfolio, Netflix ventures into unpredictable waters. The recent incorporation of Grand Theft Auto: The Trilogy – The Definitive Edition by Take-Two Interactive TTWO has been a significant card in their hand, catering to the gaming crowd through various platforms.
The ripples of these decisions will be felt in the upcoming report, likely shifting the tides for Netflix.
Diversification has been a key theme in Netflix’s narrative, with investments in localized and foreign-language content. The company’s ability to adapt to the ever-evolving content landscape might just be their saving grace in an oversaturated market.
Yet, lurking in the shadows are formidable foes like Disney’s DIS Disney+, HBO Max, Peacock, Paramount+, Apple‘s AAPL Apple TV+, and Amazon, all vying for a piece of the streaming empire. Will Netflix weather the storm or get consumed by the competition?
While Netflix’s shares have soared 27.9% year-to-date, outshining the Consumer Discretionary sector and Disney’s returns, Apple hasn’t fared as well, marking a decline of 8.3% in the same period.
Forecasts for Q1 Growth
The Zacks Consensus Estimate anticipates a growth of 5.25 million in paid total streaming net membership additions.
The expected rise in Asia-Pacific, Latin America, EMEA, and United States and Canada revenues paints a picturesque landscape for Netflix’s global expansion ambition.
Earnings on the Horizon
Disney and Apple are set to reveal their second-quarter fiscal 2024 results on May 7 and May 2, respectively.
Prepare to navigate the turbulent seas of upcoming earnings reports with the Zacks Earnings Calendar.
