Netflix Earnings Analysis: What to Anticipate After Market Close

Netflix is set to release its second-quarter earnings report after the bell on Thursday. While the company no longer provides quarterly subscriber updates, Wall Street analysts are eager to learn more about how recent changes, like price increases and the expansion of the advertising tier, are impacting the business.

According to analysts surveyed by LSEG, Netflix is expected to report earnings per share of $7.08 and revenue of $11.07 billion for the most recent quarter. If these numbers hold true, it would represent a 45% increase in earnings year-over-year and a more than 15% rise in revenue compared to the same period last year.

In the first quarter of the year, Netflix exceeded earnings expectations, with a 13% increase in revenue, partly attributed to price hikes implemented in January.

Analysts like Alicia Reese from Wedbush see a bright future for Netflix, predicting that the company is well-positioned to generate more revenue from its advertising tier in the coming years. Reese highlights the potential for increased revenue through live events, improved advertising solutions, expanded ad partnerships, and a broader content strategy.

Since the beginning of the year, Netflix’s stock has risen by more than 40%, and over the last 12 months, it has increased by over 90%. This growth reflects investor confidence in the company’s ability to drive revenue and profitability through various strategies.

Keep an eye out for the latest news as Netflix reveals its second-quarter earnings.