WBD - Is Netflix Stock a Smart Buy Before Q2 Earnings Report? | Benzinga
Netflix (NASDAQ: NFLX) is set to report second-quarter 2024 results on Jul 18.
For the second quarter of 2024, Netflix forecasts revenues to increase 16%, which equates to 21% growth on a foreign exchange (F/X) neutral basis due to price changes in Argentina and the devaluation of the local currency relative to the U.S. dollar.
The company anticipates total revenues to be $9.491 billion, projecting growth of 15.9% year over year. The Zacks Consensus Estimate for revenues is pegged at $9.53 billion, higher than the company's expectation.
Netflix projects earnings of $4.68 per share, indicating growth of 42.2% year over year. The Zacks Consensus Estimate for the same is pegged at $4.70 per share, currently higher than the company's expectation. The estimate has been unchanged over the past 30 days.
The company's second-quarter results are expected to benefit from its diversified content portfolio, which involves heavy investments in the production and distribution of localized and foreign-language content.
NFLX Estimate Movement
Image Source: Zacks Investment Research
Earnings Surprise History
In the last reported quarter, the company delivered an earnings surprise of 17.07%. The company's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average negative surprise being 9.29%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Netflix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
NFLX has an Earnings ESP of 0.00% and a Zacks Rank #2 at present.
Factors Shaping Upcoming Results
Netflix anticipates a seasonal decline in paid ...