Netflix Q1 Earnings Preview: 3 Analysts Discuss Their Expectations
2022.04.13 18:28
Netflix (NFLX) Q1 Earnings Preview: 3 Analysts Discuss Their Expectations
Netflix (NASDAQ:NFLX) is due to report earnings next Tuesday.
The Street is looking for EPS of $2.90 on sales of $7.93. Analysts from three top Street firms discuss their expectations for Netflix shares.
BMO’s Daniel Salmon (Outperform, $640 down from $650): “Subscriber growth still matters, but the market is bringing far greater scrutiny of the path to profitability for more recent streaming entrants, and the trajectory of now-positive FCF estimates for NFLX. We remain above consensus on FCF, as we see continued optimization of content spending driving top-line growth, while the total rate of spending eases. We are below sell-side consensus on paid net member additions near-term, but we think buy-side expectations are more muted, and that APAC could surprise owing to the mobile-first gaming strategy in this mobile-first viewing region.”
Barclays’ Kannan Venkateshwar (Equal Weight, $380 from $425): “Based on the average predicted value across various short and long term models, Netflix appears to be on a path to ~4mm subs, better than company guidance, but still weak in the absolute for a Q1.”
Monness, Crespi, Hardt’s Brian White (Neutral, N/A): “Although the content on Netflix has been exceptional over the past couple of years, nefarious forces appear to be lurking beneath the surface of Netflix’s post-lockdown recovery, either in the form of a slower-than-expected healing process after the pandemic-driven pull forward, a weaker-than-expected global economy, or a platform that has simply hit a near term, growth wall.”
Netflix stock price is down over 40% this week.
By Senad Karaahmetovic
