What You Should Know Beyond the Headline Estimates

In its upcoming report, Netflix (NFLX) is predicted by Wall Street analysts to post quarterly earnings of $5.74 per share, reflecting an increase of 8.7% compared to the same period last year. Revenues are forecasted to be $10.54 billion, representing a year-over-year increase of 12.5%.

The current level reflects a downward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While it’s common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts’ forecasts for key metrics can yield valuable insights.

With that in mind, let’s delve into the average projections of some Netflix metrics that are commonly tracked and projected by analysts on Wall Street.

Based on the collective assessment of analysts, ‘Revenue- Streaming Revenues’ should arrive at $10.66 billion. The estimate indicates a year-over-year change of +13.7%.

The collective assessment of analysts points to an estimated ‘Revenue- United States and Canada’ of $4.74 billion. The estimate points to a change of +12.1% from the year-ago quarter.

It is projected by analysts that the ‘Revenue- Asia-Pacific’ will reach $1.23 billion. The estimate suggests a change of +20.2% year over year.

Analysts’ assessment points toward ‘Revenue- Latin America’ reaching $1.26 billion. The estimate suggests a change of +8% year over year.

According to the collective judgment of analysts, ‘Revenue- Europe, Middle East and Africa’ should come in at $3.31 billion. The estimate points to a change of +11.8% from the year-ago quarter.

Analysts forecast ‘LATAM – Paid memberships at end of period’ to reach 54.12 million. Compared to the present estimate, the company reported 47.72 million in the same quarter last year.

The average prediction of analysts places ‘UCAN – Paid memberships at end of period’ at 90.55 million. Compared to the present estimate, the company reported 82.66 million in the same quarter last year.