Netflix (Nasdaq: NFLX ) reported earnings on Jan. 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Netflix beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly. The profit was a surprise, as analysts had predicted a loss.
Margins dropped across the board.
Netflix reported revenue of $945.2 million. The 30 analysts polled by S&P Capital IQ expected to see a top line of $934.6 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $875.6 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 $0.13. The 24 earnings estimates compiled by S&P Capital IQ averaged -$0.14 per share. GAAP EPS of $0.13 for Q4 were 80% lower than the prior-year quarter's $0.64 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 26.4%, 790 basis points worse than the prior-year quarter. Operating margin was 2.1%, 600 basis points worse than the prior-year quarter. Net margin was 0.8%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $969.7 million. On the bottom line, the average EPS estimate is -$0.08.
Next year's average estimate for revenue is $4.07 billion. The average EPS estimate is $0.37.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 7,799 members out of 9,587 rating the stock outperform, and 1,788 members rating it underperform. Among 2,585 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 2,300 give Netflix a green thumbs-up, and 285 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 $66.41.
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