The upcoming report from Netflix (NFLX) is expected to reveal quarterly earnings of $4.20 per share, indicating an increase of 99.1% compared to the year-ago period. Analysts forecast revenues of $10.15 billion, representing an increase of 14.9% year over year.
Over the last 30 days, there has been a downward revision of 1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain Netflix metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts' assessment points toward 'Revenue- United States and Canada' reaching $4.51 billion. The estimate indicates a change of +14.9% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenue- Asia-Pacific' should arrive at $1.17 billion. The estimate suggests a change of +21.4% year over year.
According to the collective judgment of analysts, 'Revenue- Latin America' should come in at $1.24 billion. The estimate suggests a change of +7.7% year over year.
The combined assessment of analysts suggests that 'Revenue- Europe, Middle East and Africa' will likely reach $3.24 billion. The estimate points to a change of +16.3% from the year-ago quarter.
Analysts predict that the 'Global Streaming Memberships - Paid net membership additions (losses)' will reach 9.12 million. The estimate is in contrast to the year-ago figure of 13.12 million.
Analysts forecast 'Global Streaming Memberships - Paid memberships at end of period' to reach 291.69 million. Compared to the current estimate, the company reported 260.28 million in the same quarter of the previous year.
The consensus estimate for 'APAC - Paid memberships at end of period' stands at 55.13 million. The estimate compares to the year-ago value of 45.34 million.
The collective assessment of analysts points to an estimated 'UCAN - Paid memberships at end of period' of 87.16 million. Compared to the present estimate, the company reported 80.13 million in the same quarter last year.
Analysts expect 'EMEA - Paid memberships at end of period' to come in at 99.2 million. Compared to the present estimate, the company reported 88.81 million in the same quarter last year.
It is projected by analysts that the 'LATAM - Paid memberships at end of period' will reach 50.85 million. The estimate compares to the year-ago value of 46 million.
The average prediction of analysts places 'LATAM - Average paying memberships' at 50.04 million. The estimate is in contrast to the year-ago figure of 44.82 million.
The consensus among analysts is that 'LATAM - Average revenue per membership' will reach $8.09. Compared to the current estimate, the company reported $8.60 in the same quarter of the previous year.
View all Key Company Metrics for Netflix here>>>
Netflix shares have witnessed a change of -9.9% in the past month, in contrast to the Zacks S&P 500 composite's -3.3% move. With a Zacks Rank #3 (Hold), NFLX is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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