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- Netflix (NASDAQ:NFLX) is scheduled to announce Q4 earnings results on Thursday, January 20th, after market close.
- The consensus EPS Estimate is $0.82 (-31.1% Y/Y) and the consensus Revenue Estimate is $7.71B (+16.0% Y/Y).
- Over the last 1 year, NFLX has beaten EPS estimates 25% of the time and has beaten revenue estimates 100% of the time.
- Over the last 3 months, EPS estimates have seen 4 upward revisions and 22 downward. Revenue estimates have seen 19 upward revisions and 11 downward.
- Netflix met revenue expectations in Q3, but notably topped them on its global streaming subscriber additions number. The company added net 4.38M global streaming subscribers - better than its own guidance for 1.54M as well as analyst expectations for 3.5M.
- Guidance for Q4 at the time was mildly upbeat as well. The company projected revenue of $7.71B and 8.5M net subscriber adds, vs. an expected 8.32M.
- Industry analysts have been weighing in with their expectations for Netflix's earnings, revenue, and subscriber growth numbers for Q4.
- Bank of America Securities, Wedbush Securities and Loop Capital Markets have been largely positive about Netflix reaching its projected subscriber numbers.
- Michael Pachter at Wedbush Securities said that Netflix holds a "nearly insurmountable competitive advantage" over rivals, and most of future subscriber growth will come from "lesser developed regions at lower monthly subscription price points."
- Netflix raised its subscription prices across the board last week, upping its basic plan to $15.49 and raising its plan that allows for four simultaneous video streams to $19.99 a month.
- Bank of America Securities analyst Nat Schindler noted "Netflix's massive content lineup in 2022 could drive subscriber growth."
- According to Google search data, Netflix's popular releases during Q4 included the dark comedy-drama Maid, season two of Emily in Paris, and the Leonardo DiCaprio-Jennifer Lawrence satire Don't Look Up.
- However, J.P Morgan and Stifel cut their price targets, citing slower subscriber growth. Douglas Mitchelson of Credit Suisse said "investor interest is as low as we have seen the past eight years" leading up to Q4 results.