When will Netflix announce its first quarter 2023 earnings?
Streaming giant Netflix will release first-quarter earnings after the US market closes on Tuesday, April 18. The conference call will be held on the same day at 1500 PT.
Netflix Q1 Earnings Consensus
Netflix expects first-quarter revenue to grow 4% year over year to $8.2 billion, in line with the company’s guidance. Its operating margin is projected to be 20.1% and diluted EPS is projected to be $2.87, down 19% from the prior year.
Netflix Q1 Earnings Preview
Last year was Netflix’s toughest year on record. Subscriber growth slowed after rival Disney gained momentum, losing its position as a market leader, but revenue grew at the slowest pace on record, falling for the first time in seven years. This has more than halved the value of Netflix stock.
But tougher conditions forced Netflix to reinvigorate revenue growth by cracking down on password sharing and introducing a much-hyped, advertising-powered tier, to fundamentally reinvigorate its business. has changed dramatically. Netflix may be back on the right track in 2023, with the stock up 15% year-to-date.
This puts pressure on Netflix to deliver in 2023 and show it can profit from its new strategy, but it could also be a bumpy start as it moves from one model to another. .
Believing over 100 million households around the world are using other people’s passwords to steal their services, Netflix is asking users in some countries to set up their own accounts or take advantage of its new paid sharing feature. I’m starting to recommend Netflix has already received some backlash as some users canceled their accounts because of this, and has since expanded its crackdown to other regions during the first quarter. That could slow subscriber growth, but Netflix says this should pick up as more users set up their own accounts or add to existing ones. But the aim is to improve earnings growth, which slowed to a record low of just 1.9% last quarter. Netflix says,Constant currency revenue growth will accelerate throughout the year,” he said, adding that both operating margins and earnings should improve.
Netflix says it expects to report “moderate positive net pay increases” in the first quarter of 2023. Wall Street believes Netflix will end the period with 236.36 million subscribers, adding about 1.9 million subscribers.
Importantly, Netflix no longer provides quarterly subscriber addition guidance, instead focusing on revenue and other financial metrics. However, we have already predicted that net charge additions in Q2 are “likely to be larger” compared to Q1. If this view changes, look for comments here.
Investors are eager to hear about the first performance of the new ad-supported tier, which offers lower prices and is complemented by ad revenue. The service was launched in 12 countries he backed by Microsoft in November.
This has led to hopes that advertising could offer a new catalyst in 2023, but it’s a slow and steady burn that may not really start until later this year. The company has previously said it believes the service will ultimately boost revenues and profits, but “the impact to 2023 will be minimal given that it will build slowly over time.” rice field. Netflix chief financial officer Spencer Neumann said on a previous conference call that he would “never get into a business” like advertising unless he believed he could provide at least 10% of the revenue. He said he hopes there will be “much more over time.”
Netflix’s operating margin will drop to around 20% in the first quarter from 25% a year earlier, pending the timing of content spending. Based on foreign exchange rates, which are currently a major headwind, we would like to achieve an 18% to 20% margin for the full year.
An important task is to show that revenues and profitability are heading towards improvement in 2023. This is especially important given that while Netflix boasts of being a profitable business, rivals like Disney remain in the red and continue to run out of cash. Netflix says it aims to generate at least $3 billion in free cash flow in 2023. That’s nearly double her $1.6 billion in 2022.
Where’s next for NFLX stock?
Netflix’s share price has risen 15% since early 2023, but it has struggled to keep up since reaching a 10-month high in February.
The key level to watch now is $333. This is roughly in line with his 50-day moving average, the bottom the stock saw a year ago before it fell, late December and he resurfaced as a level of resistance in early January. . Testing this level, he has rebounded twice in the last three sessions alone.
A break here could lead to a drop towards $311, and a sharp fall could return to the solid levels of $250.
A positive reaction to the results could allow it to climb towards a 2023 high and target $370. In particular, the average target price on Netflix for the 43 brokers covering this stock is $357.60, with a limited upside potential of less than 6% from current levels. suggesting.
Take advantage of long-term trading
Netflix will announce earnings after the market closes. Most traders should wait until trading resumes. By then, however, the news had already been digested and the stock price’s immediate reaction occurred in after-hours trading. I have.
With this in mind, services are available that allow you to trade Netflix and other technology stocks using time extension services.
Trading after hours presents opportunities for traders, but it also creates risks, especially since liquidity levels are low.find out more about long trading.
How to trade Netflix stock
In just 4 steps you can trade Netflix stock on Forex.com.
- Open a Forex.com accountagain login If you are already a customer.
- Search for ‘Netflix’ on our award-winning platform
- Choose your position and size, stop and limit levels
- make a deal
Alternatively, you can sign up and practice risk-free trading demo account.
