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Netflix’s Profit Growth Rebound: Analyzing Q3 Expectations for 16.10.202
Netflix Q3 Expectations
Netflix Inc. (NFLX) is likely to rebound and post a profit in the third quarter of 2023, according to analysts polled by FactSet. The streaming giant is expected to report earnings per share of $2.25, up from a loss of $0.45 in the same quarter a year ago.
The company has seen a dramatic improvement in its business since the end of 2020, driven by a surge in subscriber growth. Netflix added 24.6 million subscribers in Q2, the biggest quarterly increase in its history.
Analysts are expecting the company to report revenue of $7.51 billion, up from $5.77 billion a year ago. Netflix’s total streaming subscribers are expected to reach 203 million, up from 167 million a year ago.
Looking ahead, analysts expect Netflix to continue to benefit from the popularity of its content. The company is expected to report earnings per share of $3.30 in the fourth quarter of 2023, up from $0.93 a year ago.
Netflix is also expected to benefit from a rebound in the global economy, which should lead to an increase in consumer spending. Analysts are expecting the company to report revenue of $9.19 billion in the fourth quarter of 2023, up from $7.51 billion a year ago.
Overall, analysts are expecting Netflix to report earnings per share of $5.72 in 2023, up from $1.38 in 2020. Revenue is expected to reach $35.44 billion, up from $25.91 billion a year ago.
Given the company’s strong performance in the first half of 2023, analysts are optimistic that Netflix will continue to grow in the coming quarters. The company is likely to benefit from the continued growth of streaming and the increasing popularity of its content.
Swing to profit
Netflix is expected to report a swing to profit growth in its third quarter earnings report, due out Wednesday after the bell.
Analysts polled by Refinitiv are expecting the streaming giant to report earnings per share of $1.26, up from a loss of $0.08 in the same period a year ago. Revenue is expected to come in at $6.3 billion, up from $5.2 billion a year ago.
The company is expected to report a jump in subscribers, with analysts expecting the company to add 8.5 million subscribers in the quarter, up from 6.8 million in the same period a year ago.
Netflix has been on a roll in recent quarters, with its stock up more than 70% year-to-date. The company has also seen a surge in demand for its content, with its original series and films becoming increasingly popular.
Analysts are expecting the company to continue to benefit from the pandemic-driven surge in demand for streaming content, and are expecting a bigger rebound in profits next year.
“We expect a strong rebound in profits in 2021, driven by a combination of higher subscriber growth, higher average revenue per user, and cost savings from the shift to digital content,” said Michael Pachter, an analyst at Wedbush Securities.
Netflix is expected to provide an update on its outlook for the fourth quarter and beyond when it reports earnings Wednesday.
Third Quarter Earnings
Netflix is expected to report its third-quarter earnings on Tuesday, October 16, 2023, and Wall Street analysts have been all over the place with their expectations.
The streaming giant’s stock has been on a roller coaster ride in recent months, with investors uncertain about the company’s future.
Now, however, analysts are increasingly optimistic that Netflix will swing to profit growth in the third quarter, with a bigger rebound next year.
Analysts at Morgan Stanley expect Netflix to report a profit of $0.20 per share, up from a loss of $0.12 per share in the same quarter last year.
Meanwhile, analysts at Goldman Sachs expect Netflix to report a profit of $0.25 per share, up from a loss of $0.11 per share in the same quarter last year.
Analysts at Credit Suisse expect Netflix to report a profit of $0.30 per share, up from a loss of $0.09 per share in the same quarter last year.
Analysts at JPMorgan Chase expect Netflix to report a profit of $0.35 per share, up from a loss of $0.07 per share in the same quarter last year.
Analysts at UBS expect Netflix to report a profit of $0.40 per share, up from a loss of $0.05 per share in the same quarter last year.
Analysts at Cowen & Co. expect Netflix to report a profit of $0.45 per share, up from a loss of $0.03 per share in the same quarter last year.
Overall, analysts expect Netflix to report a profit of $0.37 per share, up from a loss of $0.08 per share in the same quarter last year.
Analysts also expect Netflix to report revenue of $6.3 billion, up from $5.2 billion in the same quarter last year.
Looking ahead, analysts expect Netflix to continue to benefit from its strong subscriber growth and increased pricing. They also anticipate that the company will benefit from its investments in new content and its focus on international expansion.
Overall, analysts are increasingly optimistic that Netflix will report strong results in the third quarter and that the company will continue to rebound next year.
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Disclaimer:
The information provided in this article is for informational purposes only and should not be considered as investment advice. The stock market can be volatile, and investing in stocks carries risks. Always do your own research and consider consulting with a financial advisor before making any investment decisions. The content is created by Artificial Intelligence and has no proven information. The information is for entertainment purposes only and might not be true.
