NFLX - Netflix: This Too Shall Pass

2024-04-26 04:00:59 ET

Summary

• Netflix reported strong first quarter earnings, beating estimates on earnings per share, revenue, and new subscriber additions.
• Wall Street is concerned about lower guidance for the second quarter and the company's decision to stop reporting subscriber numbers and revenue per subscriber.
• Despite the market's reaction, Friedrich Global Research believes NFLX will continue to grow and sees it as a long-term investment opportunity.

Wall Street is fickle!

Netflix ( NFLX ) reported earnings after the close of trading on Thursday, and here are the facts:

Netflix reported 1st Quarter earnings of $5.28 per share, well above the consensus estimate of $4.52. It almost doubled the earnings it reported in the same quarter of last year of $2.88 per share. The company also grew on revenue, reporting $9.37 Billion compared to consensus estimates of $9.27 Billion, which represents an increase of 14.8% over the same period last year. The consensus estimate for new subscribers was 4.8 million. Netflix reported an increase of 9.3 million. The company provided guidance for EPS of $4.68 per share for the 2nd quarter, ahead of consensus estimates of $4.54. The operating margin came in at 28.1% compared to 21% in the same period last year and well ahead of previous guidance of 24%. The company also updated full-year guidance to 24%. Free Cash Flow came in at 2.14 billion, compared to the consensus estimate of 1.9 billion. Shares of Netflix fell 8.59% today!...

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