Why Investors Aren’t Too Keen On Netflix Earnings
Netflix Inc. (NASDAQ: NFLX | NFLX Price Prediction) reported its most recent quarterly results after the closing bell Tuesday. The firm said that it had $1.74 in earnings per share (EPS) and $6.44 billion in revenue, compared with consensus estimates…
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Netflix Inc. (NASDAQ: NFLX | NFLX Price Prediction) reported its most recent quarterly results after the closing bell Tuesday. The firm said that it had $1.74 in earnings per share (EPS) and $6.44 billion in revenue, compared with consensus estimates that called for $2.13 in EPS and $6.38 billion in revenue. In the third quarter of last year, Netflix reported $1.47 in EPS and $5.24 billion in revenue.
In the third quarter, revenue grew 22.7% year over year, while quarterly operating income came in at $1.32 billion. Average streaming paid memberships in this quarter rose 25% while streaming average revenue per user increased 1.6%.
During the quarter, global net subscription additions totaled 2.20 million. Note that Netflix now has a total of 195.15 million total memberships worldwide.
Looking ahead to the fourth quarter, the company is calling for $1.35 in EPS on $6.57 billion in revenue. At the same time, the company is expecting to see net subscriber adds of 6.00 million. There are consensus estimates calling for $0.94 in EPS on $6.58 billion in revenue.
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On the books, Netflix finished the quarter with cash and cash equivalents of $8.39 billion, compared with $5.02 billion at the end of the 2019 full year.
Shares of Netflix closed at $525.42 on Tuesday, in a 52-week range of $265.80 to $575.37. The stock has a consensus price target of $526.97. Following the announcement, the stock was initially down 5% at $497.10 in the after-hours trading session.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
