Will Netflix Earnings See a Big Pandemic Boost?

By Chris Lange Published Apr 21, 10:57AM EDT

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Will Netflix Earnings See a Big Pandemic Boost? — © Wikimedia Commons

Netflix Inc. (NASDAQ: NFLX | NFLX Price Prediction) is scheduled to release its first-quarter earnings report after the markets close on Tuesday. Netflix has made a name for itself among investors as one of the big winners during this coronavirus pandemic. While the “stay at home” economy has boomed, this streaming service has seen surges in viewership that should be reflected in the report.

For the first quarter, the consensus forecast is $1.65 in earnings per share (EPS) and $5.76 billion in revenue. In the same period of last year, Netflix said it had $0.76 in EPS and $4.52 billion in revenue.

Netflix’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 additions of 7 million.

According to the fourth-quarter report, global net subscription adds 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.

It’s worth pointing out that Netflix reported 167.09 million total memberships worldwide at the end of the fourth quarter.

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Excluding Tuesday’s move, Netflix stock had outperformed the S&P 500 and Dow Jones industrial average with a gain of about 35% year to date. In the past 52 weeks, the share price was up 21%.

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 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 down less than 1% on Tuesday, at $435.17 in a 52-week range of $252.28 to $449.52. The consensus price target is $402.21.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.