Netflix (Nasdaq: NFLX ) reported earnings on July 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Netflix met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Netflix chalked up revenue of $889.2 million. The 28 analysts polled by S&P Capital IQ expected a top line of $889.0 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $788.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.11. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.04 per share. GAAP EPS of $0.11 for Q2 were 91% lower than the prior-year quarter's $1.26 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.6%, 1,030 basis points worse than the prior-year quarter. Operating margin was 1.8%, 1,280 basis points worse than the prior-year quarter. Net margin was 0.7%, 790 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $910.1 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $3.63 billion. The average EPS estimate is $0.05.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 7,806 members out of 9,550 rating the stock outperform, and 1,744 members rating it underperform. Among 2,534 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 2,235 give Netflix a green thumbs-up, and 299 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Netflix is hold, with an average price target of $89.50.
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