Netflix Earnings: Here’s Why Investors are Not Excited Now
Netflix, Inc. (NASDAQ:NFLX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 8.31%.
Netflix, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 345.45% to $0.49 in the quarter versus EPS of $0.11 in the year-earlier quarter.
Revenue: Rose 20.23% to $1.07 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Netflix, Inc. reported adjusted EPS income of $0.49 per share. By that measure, the company beat the mean analyst estimate of $0.40. It missed the average revenue estimate of $1.07 billion.
Quoting Management: There was no comment from the management.
Key Stats (on next page)…
Revenue increased 4.4% from $1.02 billion in the previous quarter. EPS increased 880% from $0.05 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.37 to a profit $0.45. For the current year, the average estimate has moved up from a profit of $1.32 to a profit of $1.40 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)