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What To Expect From Netflix’s (NFLX) Q1 Earnings

StockStory - Wed Apr 17, 2:00AM CDT

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Streaming video giant Netflix (NASDAQ: NFLX) will be reporting earnings tomorrow after the bell. Here's what to expect.

Last quarter Netflix reported revenues of $8.83 billion, up 12.5% year on year, beating analyst revenue expectations by 1.4%. It was a mixed quarter for the company, with solid growth in its users but slow revenue growth. The company reported 260.3 million users, up 12.8% year on year.

Is Netflix buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Netflix's revenue to grow 13.7% year on year to $9.28 billion, improving on the 3.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.54 per share.

Netflix Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing thirteen upwards revisions over the last thirty days. The company missed Wall St's revenue estimates five times over the last two years.

With Netflix being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for consumer internet stocks, but the whole sector has been facing a sell-off since late last year, with stocks down on average 4.7% over the last month. Netflix is up 0.1% during the same time, and is heading into the earnings with with analyst price target of $625.6, compared to share price of $621.4.

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