Netflix (NFLX) Reports Q3: Everything You Need To Know Ahead Of Earnings

Streaming video giant Netflix (NASDAQ: NFLX) will be reporting results tomorrow after the bell. Here’s what to look for.

Netflix met analysts’ revenue expectations last quarter, reporting revenues of $9.56 billion, up 16.8% year on year. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth. It reported 277.6 million users, up 16.5% year on year.

Is Netflix a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Netflix’s revenue to grow 14.3% year on year to $9.77 billion, improving from the 7.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.13 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Netflix has missed Wall Street’s revenue estimates three times over the last two years.

With Netflix being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for consumer internet stocks. However, there has been positive investor sentiment in the segment, with share prices up 3.9% on average over the last month. Netflix’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $713.50 (compared to the current share price of $706.50).

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