Netflix Q1 Earnings: A Comprehensive Look at Beyond Revenue and EPS Projections

Netflix Stock

As the eagerly awaited Netflix (NASDAQ:NFLX)) quarterly report approaches, market analysts anticipate earnings to soar to $4.49 per share, marking a robust 55.9% increase from the same period last year. Revenue forecasts sit at $9.26 billion, reflecting a healthy 13.4% year-over-year growth.

Over the past month, consensus EPS estimates have seen a marginal uptick of 0.1%, indicating a collective reassessment by analysts of their initial projections.

Before a company unveils its earnings, understanding the revisions to earnings estimates is paramount. These revisions serve as vital indicators of potential investor sentiments towards the stock. Empirical studies consistently highlight the correlation between earnings estimate revisions and short-term stock price performance.

While consensus earnings and revenue estimates offer valuable insights into quarterly business performance, a closer look at analysts’ projections for specific metrics offers a more nuanced understanding.

Let’s delve into the average forecasts for key Netflix metrics frequently tracked and anticipated by Wall Street analysts.

Analysts anticipate ‘Revenue- Streaming Revenues’ to reach $9.26 billion, signaling a year-over-year increase of +13.9%.

The consensus among analysts places ‘Revenue- United States and Canada’ at $4.10 billion, reflecting a +13.6% change from the previous year.

For ‘Revenue- Asia-Pacific’, analysts project $1.05 billion, marking a +12.6% change from the same quarter last year.

In ‘Revenue- Latin America’, analysts foresee $1.13 billion, indicating a +5.5% change from the prior-year quarter.

The collective analyst assessment for ‘Revenue- Europe, Middle East, and Africa’ stands at $2.98 billion, indicating a +18.3% change from the prior year.

Analysts predict ‘Global Streaming Memberships – Paid net membership additions (losses)’ to hit 5,251.33 thousand, a significant increase compared to the same quarter last year.

For ‘LATAM – Paid memberships at end of period’, analysts estimate 46,754.50 thousand, up from 41,249 thousand in the previous year’s quarter.

In ‘UCAN – Paid memberships at end of period’, analysts project 81,379.01 thousand, compared to 74,398 thousand in the same period last year.

‘APAC – Paid memberships at end of period’ are expected to reach 46,843.30 thousand, showing growth from the previous year’s 39,478 thousand.

Analysts predict ‘Global Streaming Memberships – Paid memberships at end of period’ to hit 265,902.60 thousand, up from 232,498 thousand in the previous year’s quarter.

For ‘EMEA – Paid memberships at end of period’, analysts expect 90,925.74 thousand, compared to 77,373 thousand in the same quarter last year.

Finally, analysts anticipate ‘EMEA – Average revenue per membership’ to be $11.19, up from $10.89 in the same quarter of the previous year.

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About the author: Stephanie Bédard-Châteauneuf has over seven years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on tech stocks, consumer stocks, market news, and personal finance. She has an MBA in finance.