Netflix Inc. (NASDAQ: NFLX) is scheduled to release its most recent quarterly results after the markets close on Wednesday. The consensus estimates are calling for $1.04 in earnings per share (EPS) and $5.25 billion in revenue. The third quarter of last year reportedly had EPS of $0.89 on $4.0 billion in revenue.
Netflix stock has been crushed over the past quarter. Although nothing has really changed at Netflix in this time, it’s the competition that many analysts are worried about. Apple Inc. (NASDAQ: AAPL) and Walt Disney Co. (NYSE: DIS) have thrown their hats in the ring and are preparing online streaming platforms of their own.
While Netflix is the king of content right now, Disney could pose a real threat with its library of cartoons and movies, not to mention its incredibly popular marvel franchises. On the other hand, it’s hard to discount Apple from anything with its expansive ecosystem, Apple TV and over $200 billion in the bank that could easily be shifted to content creation. The kicker here is that Apple and Disney’s prices are looking to undercut Netflix.
Last week, Monness Crespi Hardt analyst Brian White reiterated a Buy rating for Netflix but cut $100 off the price target, lowering it to $340. He noted that, in light of the weakening macro environment since Netflix last provided guidance, combined with more details last month from Apple around its planned launch of Apple TV+ and incremental data points around increasingly fierce competition for content, there was no choice but to cut the target.
Excluding Wednesday’s move, Netflix had underperformed the broad markets, with its stock up 6% year to date. In the past 52 weeks, the stock was down 16%.
A few analysts weighed in on Netflix ahead of the report:
- RBC has a Buy rating with a $450 price target.
- Raymond James has a Buy rating and a $415 price target.
- Morgan Stanley has an Overweight rating with a $400 target.
- UBS Group’s Buy rating comes with a $370 target price.
- Goldman Sachs has a Buy rating with a $360 price target.
- Credit Suisse has a Buy rating and a $440 price target.
- Rosenblatt has a Neutral rating with a $265 price target.
Shares of Netflix traded at $282.61 early Wednesday, in a 52-week range of $231.23 to $385.99. The consensus price target is $368.63.