As Netflix (NASDAQ: NFLX) prepares to unveil its first-quarter earnings for 2024, analysts are projecting robust growth across key metrics. The streaming giant is poised to announce earnings per share (EPS) of $4.49, a remarkable 55.9% surge from the same period last year.
This substantial increase in EPS is expected to instill optimism among investors and analysts, signaling Netflix’s strong financial performance. Revenue is also anticipated to rise by 13.4% year over year, reaching approximately $9.26 billion.
Analyst Expecting 4.88 Million New Subscribers in Q1
While Netflix has not provided official guidance on subscriber growth, analysts estimate that the company will add around 4.88 million new subscribers in Q1 2024, nearly triple the number from the previous year. This growth is expected to be driven by the company’s recent strategic moves, including introducing ad-tier plans and a password-sharing crackdown.
Regionally, the U.S. and Canada are projected to generate revenue of $4.10 billion, up 13.6%, while the Asia-Pacific region is expected to see a 12.6% increase, reaching $1.05 billion. Latin America, Europe, the Middle East, and Africa (EMEA) regions are also anticipated to experience growth, with revenue increasing by 5.5% and 18.3%, respectively.
Netflix’s Q4 2023 Results Set Loft Expectations, Ad Tier Data in Focus
In the previous quarter (Q4 2023), Netflix delivered impressive results, adding 13.1 million users and reaching a record high of 260.8 million subscribers. This growth was primarily driven by the success of the company’s new ad-tier plans and its proactive measures to curb password sharing.
The positive outcomes of these strategic moves are expected to instill confidence in investors and analysts about Netflix’s ability to adapt and grow in a competitive market. Financial performance was also robust, with revenue growing by 8.2% to $8.83 billion and net income surging to $937.8 million, resulting in an EPS of $2.11.
As investors and analysts eagerly await Netflix’s Q1 2024 earnings report, several key metrics will be closely watched. Revenue growth, particularly from the ad-tier plan, will continue influencing the company’s overall performance.
Additionally, Netflix has set a target to improve its operating margin to 24% for the full year of 2024, up from 21% in 2023. Subscriber numbers will also be a critical focus, given the company’s need for more official forecasts. Investors will see how recent initiatives like the ad-tier model and market expansions translate into user growth.
Furthermore, updates on Netflix’s strategic moves, such as the recently announced WWE programming deal, will be of significant interest to investors and analysts. This deal, which marks a substantial expansion of Netflix’s content offerings, has the potential to significantly impact subscriber engagement and financial metrics.
Do you think Netflix will beat expectations in Q1 2024? Let us know in the comments below.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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