Netflix Inc. (NASDAQ: NFLX), is scheduled to release its financial results for fourth quarter after-hours, on January 21 ..COM
Experts are confident that it will surpass expectations for back-to-back events in Q4.
In November, more than 108 millions global viewers tuned into Netflix to watch the highly anticipated Jake Paul versus Mike Tyson Boxing Match.
The two NFL games attracted an average of 30 million viewers (each) during the fourth quarter.
Netflix shares are currently trading 7.0% below their previous high, as macro-economic uncertainties continue to weigh heavily on mega-cap stocks.
Netflix Q4 Earnings Preview
Netflix is expected Tuesday to report $10.11 billion revenue and $4.18 per share adjusted earnings for the Fourth Quarter.
All of these numbers indicate significant growth year-on-year, with the EPS figure translating to a near 100 percent increase.
Netflix shares have been able command a premium on the back of highly rated content, original movies and series, as well as buzz-worthy events.
A positive update could lead to a significant increase in the stock price of the streamer following its release.
Also, optimism about the high-margin ad business could help NFLX stock rise in the coming weeks.
NFLX’s valuation may be justified by sports and live events
Netflix Inc. is known to rally on the back of strong financial releases. Its share price rose significantly after two of its last three earnings days.
Investors should be aware that NFLX is expected to deliver a very strong Q4 report in January 21 . According to BI analyst Geetha Rangeanathan, the combination of live sports programming with a strong content library makes for a “perfect set-up” for the mass media company.
Ranganathan believes that sports, including the WWE Raw and live events recently added to Netflix will “shape Netflix’s future” and “drive subscribers momentum in a major way.”
Netflix stock, however, does not pay a dividend as of the date of this article.
Netflix stock is priced perfectly ahead of Q4 earnings.
Netflix’s latest semi-annual report shows that engagement levels have not increased on an annual basis.
This could prevent a price increase that NFLX desperately needs to offset the negative effects of a strong US Dollar. It may be forced to lower its revenue forecast for 2025 if it does not.
A minor setback, especially given the premium valuation of Netflix’s shares, could cause a very aggressive reaction in its shares following its Q4 earnings announcement.
Investors should be aware that the best time to buy Netflix stock or any other stock is not just hours before it releases its earnings report.
This post Netflix Q4 earnings call preview: What to expect appeared first on The ICD
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