Netflix to Deliver First Quarter Earnings Report For 2018

Shares of Netflix were trading mostly higher days prior to the release of its first fiscal quarter earnings report. The company which last delivered its quarterly earnings report is scheduled to release its first quarter earnings on Monday after the market closes.

Earnings Expectations

Over the past couple of quarters, analysts have primarily focused on the company’s subscriber growth aside from their earning numbers. Analysts have projected an additional 23.7 million users from its international subscribers this year which is higher than Wall Street estimates of an additional 19.6 million new international subscribers. Forecasts have also revealed that the company will record as much as 217 million subscribers by the year 2025.

For their fiscal first quarter earnings results, analysts are expecting its revenue to rise 40% year over year from $2.64 billion to $3.69 billion this quarter while their earnings is expected to come at $0.63 per share representing a 58% growth from the same quarter last year. 

In the United States, the company is expected to report an additional 1.45 million users which is 2% higher than the same period last year while an additional 4.90 million subscribers are expected to be posted by the company from its international subscribers representing a 39% growth year over year from last year’s 3.53 million additional international users.

Netflix is also expected to announce or show an update regarding its plans to boost profitability during its earnings call. The company which has been expanding its efforts through its investment in the creation of original content as well as user experience improvement which gives the company leverage in being able to drive more revenue and cash flow in the coming quarters.

Netflix Shares 

Shares of Netflix Inc has risen by more than 4% during the previous week to trade at around $310.65 per share in anticipation of the company’s upcoming earnings report next week. Analysts have projected the stock of the company to rise as it is expected to report mostly upbeat numbers.

According to analysts, shares of Netflix are likely to rise as it reports its Q1 earnings results which is in line or exceeds analyst estimates which has been projected by majority. However, some have pointed out that the stock may have been overvalued due to the forecasted potential of the company to record a high international growth.

While the company is still set to post a growth as it became a major player in the demand for modern media, Netflix’s stock price is projected to hit $350 per share in the next couple of months and has been one of the top-performing stocks in the market this year up by more than 60%.

Read also: Netflix Hits $100 Billion Market Capitalization

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