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Netflix (NFLX) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Although the revenue and EPS for Netflix (NFLX) give a sense of how its business performed in the quarter ended March 2023, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers. Read More...

For the quarter ended March 2023, Netflix (NFLX) reported revenue of $8.16 billion, up 3.7% over the same period last year. EPS came in at $2.88, compared to $3.53 in the year-ago quarter.

The reported revenue represents a surprise of -0.25% over the Zacks Consensus Estimate of $8.18 billion. With the consensus EPS estimate being $2.83, the EPS surprise was +1.77%.

While investors closely watch year-over-year changes in headline numbers — revenue and earnings — and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company’s underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock’s price performance.

Here is how Netflix performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Global Streaming Memberships – Paid net membership additions (losses): 1751 thousand versus 3390.75 thousand estimated by eight analysts on average.

  • APAC – Paid memberships at end of period: 39478 thousand versus the seven-analyst average estimate of 39250.85 thousand.

  • LATAM – Paid memberships at end of period: 41249 thousand versus 42370.58 thousand estimated by seven analysts on average.

  • Global Streaming Memberships – Paid memberships at end of period: 232498 thousand versus 234035.9 thousand estimated by seven analysts on average.

  • UCAN – Paid memberships at end of period: 74398 thousand versus the seven-analyst average estimate of 74676.3 thousand.

  • EMEA -Paid memberships at end of period: 77373 thousand compared to the 77684.41 thousand average estimate based on seven analysts.

  • Revenue- United States and Canada (UCAN): $3.61 billion versus $3.59 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +7.7% change.

  • Revenue- Asia-Pacific (APAC): $933.52 million versus the seven-analyst average estimate of $931.09 million. The reported number represents a year-over-year change of +1.8%.

  • Revenue- Latin America (LATAM): $1.07 billion compared to the $1.06 billion average estimate based on seven analysts. The reported number represents a change of +7.1% year over year.

  • Revenue- Europe, Middle East and Africa (EMEA): $2.52 billion compared to the $2.56 billion average estimate based on seven analysts. The reported number represents a change of -1.7% year over year.

  • Revenues- Streaming Revenues: $8.13 billion versus $8.15 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +3.9% change.

  • Revenue- DVD Revenues: $31.50 million compared to the $33.57 million average estimate based on six analysts. The reported number represents a change of -20.9% year over year.

View all Key Company Metrics for Netflix here>>>

Shares of Netflix have returned +1.6% over the past month versus the Zacks S&P 500 composite’s +4.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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