The 10-second takeaway
For the quarter ended March 31 (Q1), Netflix met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded. GAAP earnings per share grew.
Margins grew across the board.
Netflix chalked up revenue of $1.02 billion. The 32 analysts polled by S&P Capital IQ looked for a top line of $1.02 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $869.8 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 $0.31. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. Non-GAAP EPS were $0.31 for Q1 versus -$0.08 per share for the prior-year quarter. GAAP EPS were $0.05 for Q1 versus -$0.08 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.0%, 70 basis points better than the prior-year quarter. Operating margin was 3.1%, 330 basis points better than the prior-year quarter. Net margin was 0.3%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.06 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $4.30 billion. The average EPS estimate is $1.28.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 7,745 members out of 9,678 rating the stock outperform, and 1,933 members rating it underperform. Among 2,887 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 2,629 give Netflix a green thumbs-up, and 258 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 $135.84.
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