- Netflix’s 2Q revenue forecast is $11.04 billion, surpassing estimates of $10.88 billion.
- The company anticipates an EPS of $7.03, above the expected $6.24.
- Operating income is expected to reach $3.68 billion, exceeding the estimated $3.28 billion.
- Netflix predicts an operating margin of 33.3%, compared to the estimated 30%.
- Annual revenue forecast remains between $43.5 billion and $44.5 billion, close to the estimate of $44.33 billion.
- The company maintains an operating margin forecast of 29%, aligning with the estimate of 29.2%.
- Free cash flow is projected to be around $8 billion, slightly below the estimate of $8.51 billion.
- In the first quarter, revenue was $10.54 billion, a 13% year-over-year increase, and slightly above expectations of $10.5 billion.
- US & Canada revenue grew 9.3% year-over-year to $4.62 billion, but fell short of the $4.68 billion estimate.
- EMEA revenue increased by 15% year-over-year to $3.41 billion, beating the $3.31 billion forecast.
- Latin America revenue was $1.26 billion, showing an 8.3% year-over-year growth, matching the estimate.
- APAC revenue surged 23% year-over-year to $1.26 billion, outperforming the $1.24 billion estimate.
- First-quarter EPS was $6.61, significantly higher than the previous year’s $5.28 and the estimated $5.68.
- Operating income reached $3.35 billion, a 27% year-over-year increase, above the estimate of $3 billion.
- The operating margin rose to 31.7% from 28.1% year-over-year, surpassing the estimated 28.6%.
- Cash flow from operations amounted to $2.79 billion, up 26% year-over-year, topping the $2.21 billion estimate.
- Free cash flow increased by 25% year-over-year to $2.66 billion, exceeding the estimate of $2.04 billion.
- Netflix sees no significant change to its overall business outlook since the last earnings report.
- The company’s performance is currently above the mid-point of the 2025 revenue outlook range of $43.5 billion to $44.5 billion.
- Tim Haley, the longest-tenured board member, will not stand for re-election.
- Netflix is adjusting prices in France, which was already accounted for in the 2025 guidance.
- The 2025 revenue outlook assumes healthy member growth, higher subscription pricing, and a near doubling of ad revenue, partially impacted by foreign exchange factors.
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Netflix Inc on Smartkarma
Analyst coverage of Netflix Inc on Smartkarma by Baptista Research showcases a positive outlook on the streaming giant’s performance. In a report titled “Netflix Soars to New Heights: Breaking Down Their Massive Growth and the Challenges Ahead!“, Baptista Research highlights Netflix’s strong performance in the streaming industry, driven by substantial subscriber growth and robust financial metrics. The company’s unprecedented net addition of 19 million subscribers in the fourth quarter of 2024 exceeded analyst expectations, pushing the stock to a record high of $999. Investor confidence in Netflix’s growth trajectory is evident.
In another report by Baptista Research, titled “Netflix’s Bold Leap Into Live Entertainment: Will It Streamline Success or Buffer Disappointment?“, the focus is on Netflix’s strategic move into live entertainment. Netflix’s decision to venture into live entertainment, including broadcasting NFL games and featuring high-profile artists like Beyoncé, is seen as a calculated effort to diversify offerings and appeal to a wider audience. This strategic expansion aligns with Netflix’s reputation for innovation and adaptability in the highly competitive streaming market.
A look at Netflix Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Netflix Inc. has a bright long-term outlook based on the Smartkarma Smart Scores. With a Growth score of 4 and a Resilience score of 4, the company is positioned well for future expansion and has shown a strong ability to weather challenges. This indicates a positive trend in the company’s performance trajectory over time.
Additionally, Netflix Inc. scores high in Momentum with a score of 5, reflecting a strong upward momentum in the market. While the Value and Dividend scores are moderate at 2 and 1 respectively, the company’s stellar performance in Growth, Resilience, and Momentum factors paint a promising picture for its future prospects.
### Summary: Netflix Inc. is an Internet subscription service for watching tv shows and movies. Subscribers can instantly watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices and in the United States, subscribers can receive standard definition DVDs and Blu-ray Discs delivered to their homes. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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