Netflix (Nasdaq: NFLX ) is expected to report Q4 earnings on Jan. 23. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Netflix's revenues will grow 6.8% and EPS will shrink to a loss.
The average estimate for revenue is $934.9 million. On the bottom line, the average EPS estimate is -$0.14.
Last quarter, Netflix booked revenue of $905.1 million. GAAP reported sales were 10% higher than the prior-year quarter's $821.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, EPS came in at $0.13. GAAP EPS of $0.13 for Q3 were 89% lower than the prior-year quarter's $1.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 26.8%, 790 basis points worse than the prior-year quarter. Operating margin was 1.8%, 1,000 basis points worse than the prior-year quarter. Net margin was 0.8%, 680 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $3.60 billion. The average EPS estimate is $0.02.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 7,795 members out of 9,583 rating the stock outperform, and 1,788 members rating it underperform. Among 2,582 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 2,291 give Netflix a green thumbs-up, and 291 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 $71.40.
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