Netflix Inc.’s first quarter earnings report is due April 20, 2021. Considering the previous quarterly report, this guide will predict the company’s first quarter earnings.
On January 19, 2021, Netflix announced an increase in anticipated subscribers. Netflix has surpassed 203.6mln subscribers around the world. That said, Netflix reported an extra 8.5mln paid net subscribers in Q4, bringing in a record of 37mln paid memberships in 2020 After posting its Q4 2020 report, which showed lower-than-expected earnings per share and results in line with expectations , it saw its stock depreciating. It initially rose more than 10% since the 2021 bottom due to the big jump in subscribers but quickly turn lowered after the company offered conservative guidance on its Q4 financial report. The Internet television network posted earnings per share of 1.19 for the fourth quarter of 2020, slightly behind the target of 1.38.
Last quarter’s Revenue was 6.64 billion, higher than analysts had expected. Compared to the same period last year, sales have increased by 21.5%. Over the past year, Netflix has diluted its earnings per share by 4.13 . For the full year, Netflix added a record 37 million subscriptions, earned 25 billion in annual sales, and increased operating profits by 76% to 4.6 billion. For Q1 2021, Netflix is expected to report around 6.0 million paid net ads, from the 15.8 million reported in the previous quarter, despite the effects of the initial COVID-19 lockdown. Demand for this specialty has grown significantly as a result of recent corporate scandals, with consumers expected to stay at home for at least the next few months.
Netflix’s average return has more than tripled over the past year. Investors have turned their attention to the company’s sales and profits and whether these will continue to grow rapidly. Despite solid sales growth compared to the same time frame a year ago, analysts expect earnings to grow at the lowest rate in the next three months, amid a decline of the global paid membership on a year on year basis. This growth is likely to be slightly higher than the same quarter a year ago, but in 2020 it increased significantly slower than in the current quarter. Netflix’s core strategy is to expand its online membership market globally, as it is the company’s primary source of revenue. As new streaming platforms such as Disney+ and Apple TV+ emerge, Netflix’s approach is becoming more and more troubling.
According to the Zacks Consensus Estimate , Netflix forecasts Q1 earnings to be $2.97 per share, implying over 89.8% of year-over-year growth, but the Refinitiv consensus estimates anticipates earnings per share of $1.65 on revenue of $5.76 billion. The Zacks consensus estimate for March quarter revenues was pegged at $7.13 billion, over 23.6% higher than a year earlier. Global subscriber net additions are expected to be 8.2 million, according Street Account.
Netflix stock technical analysis
Shares of Netflix hit a new high of 593.29 on January 20, the day after its fourth-quarter earnings report. However the stock fell in the days that followed and currently the Netflix stock has remained stable for the past 11 weeks, at the 530-560 area, pretty close to the year’s open price.
However, the stock has remained above its 50-day moving average line for the last 2 weeks, indicating a sideways move. Key resistance is close to the month’s high at the round 560, and immediate support at the confluence of 20- and 50-DMA and lower at 200-DMA, at 533 and at 513 respectively.
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