Netflix Inc. Inc. scheduled to report earnings after Thursday’s close. The stock hit a record high of $700.99/share in 2021 and, as of this writing, it is currently trading near $616. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $4.51/share on $9.25 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $4.61/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company has managed to grow its earnings nicely over the last few years. In 2017, the company earned $1.25, and in 2023 the company earned $12.03, which is a large increase! Additionally, the company is expected to earn $17.52 in 2024 and in 2025, earnings are expected to grow to $21.34! The company sports a price to earnings (P/E) ratio of 51 which is 2.2x the S&P 500.
Charts & Data Courtesy of MarketSurge Inc.
Charts & Data Courtesy of MarketSurge Inc.
A Closer Look At The Technicals
Technically, the stock is trading around 4% below its 52-week high and currently bouncing off its 50 day moving average line. The stock is not that far away from its all-time high of $700.99. The bulls want to see the stock gap up and rally after reporting earnings and the bears want to see it gap down and fall. It’s currently trading near its simple 50 day moving average.
Company Profile
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured on FindLeadingStocks.com
