Netflix (NFLX) Expected to Report Quarterly Earnings Soon

Netflix (NASDAQ:NFLX) is set to release its earnings results following the market's close on Tuesday, January 21. Analysts are forecasting that the company will report earnings of $4.21 per share, along with significant revenue of approximately $10.14 billion for the current quarter.

In its previous earnings report, which was shared on October 17, Netflix announced earnings of $5.40 per share. This figure surpassed analysts' expectations, which were set at $5.09, by a margin of $0.31. The company's revenue for that quarter was reported at $9.82 billion, again above the predicted revenue of $9.77 billion.

Recent Financial Performance of Netflix

In addition to earnings, Netflix boasted a net margin of 20.70% and a notable return on equity of 35.86%. Looking forward, analysts have set targets for the company, predicting an average of $20 EPS for the ongoing fiscal year and $24 EPS for the next fiscal year.

Stock Performance Insights

On Wednesday, Netflix shares saw a rise of $19.86, reaching a trading price of $848.26. The trading volume was about 3.17 million shares, compared to its average volume of around 3.09 million. Over the past year, the stock has experienced a low of $475.26 and a high of $941.75. Current key financial ratios include a quick ratio of 1.13, a current ratio of 1.13, and a debt-to-equity ratio of 0.62. The company currently has a market capitalization of approximately $362.60 billion with a PE ratio of 48.01.

Insider Transactions at Netflix

There have been some recent insider activities within Netflix. On October 18, CEO Gregory K. Peters sold 4,186 shares of the company's stock at an average price of $750 each, resulting in a total transaction amount of about $3.14 million. Following this sale, Peters holds about 13,090 shares valued at around $9.82 million, marking a decrease of 24.23% in his ownership. Additionally, director Anne M. Sweeney sold 589 shares on November 20 at an average price of $880, leading to a transaction worth $518,320. In total, Netflix insiders have sold 156,742 shares recently, worth approximately $131 million, which brings insider ownership down to 1.76% of the company stock.

Analyst Ratings Overview

In recent market analyses, several brokerages have updated their ratings on Netflix stock. Needham & Company raised its target price from $700 to $800 while maintaining a 'buy' stance. Citigroup increased their target from $725 to $920 and assigned a 'neutral' rating. Meanwhile, Piper Sandler and Bank of America adjusted their price targets up significantly, with Piper Sandler setting it at $950 and Bank of America at $1,000. Overall, Netflix receives a consensus rating of 'Moderate Buy' with an average price target set at around $845.82 from various analysts.

About Netflix

Netflix, Inc is a provider of streaming entertainment services, offering a wide variety of TV shows, documentaries, films, and games across numerous genres and languages. Membership provides access to streaming content through various internet-connected devices, including televisions and mobile devices.

Conclusion

With the upcoming earnings report, investors and analysts are closely watching Netflix's performance, which could impact market perception and stock valuation greatly.

Netflix, earnings, stock