Key insights
- Netflix's Q1 earnings are expected after Thursday's close, with options pricing indicating a potential 6% swing in either direction. Analysts are largely bullish, anticipating revenue of $12.19B and EPS of $0.78. A strong report could boost investor confidence, especially after exiting the Warner Bros. Discovery deal. JPMorgan expects Netflix to be "re-focused and swinging," potentially boosting margin forecasts. Positive earnings could lift the stock above $112, while a miss could drag it below $100.
Netflix's latest quarterly earnings are due after the closing bell Thursday, with the stock seen making a big move following the results.
The report will be Netflix's first since backing out of the bidding war for Warner Bros. Discovery in February.
Netflix is scheduled to report earnings after markets close Thursday, with traders expecting a big move from the streaming giant's stock following the results.
Based on current options pricing, Netflix (NFLX) shares are seen swinging up to 6% in either direction by the end of the week. A move of that size from Tuesday's close could push the stock above $112, its highest point since November. The low end of that range would drag it below $100, giving up some of the stock's recent gains.
Netflix shares have surged since the company dropped out of its bidding war with Paramount Skydance (PSKY) for Warner Bros. Discovery (WBD) in February, leaving the shares up about 13% from where they started the year. The shares also got a boost after Netflix announced plans last month to raise prices.
A strong print from Netflix's first report since ending its pursuit of Warner Bros. Discovery could help boost investor confidence in the streaming giant's outlook.
JPMorgan analysts said recently they expect Netflix to "come out re-focused and swinging" following the breakdown of the Warner Bros. deal, with the potential for Netflix to boost its margin forecast now that it is no longer pursuing the deal and has received a $2.8 billion termination fee from Warner Bros.
Netflix is projected to report first-quarter revenue of $12.19 billion along with earnings of 78 cents per share, each up more than 15% from the same time a year ago.
Analysts are largely bullish on Netflix, with 12 of the 15 analysts with current ratings tracked by Visible Alpha calling Netflix a "buy," compared to three neutral ratings. Their average price target of $118 would suggest about 11% upside from Tuesday's close.
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