Netflix (NFLX) Q4 Earnings Report Preview: What To Look For

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Netflix (NFLX) Q4 Earnings Report Preview: What To Look For

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

Netflix beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $9.82 billion, up 15% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates. It reported 282.7 million users, up 14.4% 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 14.4% year on year to $10.11 billion, improving from the 12.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.21 per share.

Netflix (NFLX) Q4 Earnings Report Preview: What To Look For

Analysts covering the company have generally 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 3.6% on average over the last month. Netflix is down 5.5% during the same time and is heading into earnings with an average analyst price target of $873.81 (compared to the current share price of $861.50).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. .

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