Will Netflix Earnings Match Up With Investor Sentiment on Tuesday?

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Published: April 20, 2020 12:41 pm

Netflix Inc. (NASDAQ: NFLX) is set to report its most recent quarterly results after the closing bell on Tuesday. Netflix has been one of the stocks to buy during this coronavirus lockdown, as more people are staying home and streaming shows. But will the fundamentals match up with investor sentiment?

Overall, analysts are calling for $1.64 in earnings per share (EPS) and $5.74 billion in revenue. In the same period of last year, Netflix said it had $0.76 in EPS and $4.52 billion in revenue.

The company’s previously issued guidance for the first quarter called for $1.66 in EPS on $5.73 billion in revenue. The company also expected to see net subscriber adds of 7 million. The question is how this will stand up to the COVID-19 crisis?

According to the fourth-quarter report, global net subscription additions totaled 8.76 million in the period. In the United States, Netflix added 0.42 million memberships. Internationally, the firm added roughly 8.33 million memberships.

Note that Netflix reported 167.09 million total memberships worldwide at the end of the fourth quarter.

Excluding Monday’s move, Netflix stock had outperformed the S&P 500 and the Dow Jones industrial average with a gain of about 31% year to date. In the past 52 weeks, the share price was up 19%.

Here’s what a few analysts said ahead of the report:

Raymond James reiterated a Buy rating.
RBC has a Buy rating with a $420 price target.
UBS has a Neutral rating and a $370 price target.
BMO has an Outperform rating with a $500 price target.
Rosenblatt Securities rates it as Neutral with a $370 price target.
Morgan Stanley rates it as Overweight with a $450 price target.
Goldman Sachs has a Buy rating and a $490 target price.
JPMorgan’s Overweight rating comes with a $480 price target.

Netflix stock traded up about 4% on Monday, at $441.30 in a 52-week range of $252.28 to $449.52. The consensus price target is $392.13.

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