Netflix (NFLX) is due to report its first-quarter earnings results after the market close on Tuesday, April 18. While investors will be waiting to see the effects of the company’s recently launched ad-supported tier, Zacks Investment Research, based on 11 analysts’ forecasts, expects a consensus EPS of $2.83 this quarter, compared to $3.53 EPS for the same quarter last year.
The consensus estimate for Revenue is $8.17 billion, which confirms the year-over-year growth of about 4%. The consensus estimate is that earnings stand at about $2.86 per share.
As the competitors become more and more powerful, Netflix does not update the outlook of subscribers’ number in public, but it works more on the quality of services and sales in different shapes. However, investors expect 2.3 million net additions. One of the new methods to earn more, even without increasing the subscribers’ numbers, is its “Basic with Ads.” tariff. It will be the first quarter to see the effect of “Basic with Ads’ in earnings results. On top of that, account-sharing effects will be in focus, as the company recently introduced paid sharing of accounts in Canada, New Zealand, Portugal, and Spain, after some Latin American countries last year.
Sales of Netflix remained consistent in 2022, with each quarter recording $7.9B-$8.0B, while total sales in the year were $31.6B, up 6.4% from the previous year. Overall expectations are natural, as it was the whole year of 2022. From a technical point of view, the share price could retune above 23.6% of its Fibonacci levels from its last free-fall to confirm that the downtrend is over for now. However, for an uptrend, we need to see the price above $370, which is 38.2% of the Fibonacci level.