Netflix NFLX releases its next round of earnings this Tuesday, July 20. Here is Benzinga's essential guide to Netflix's Q2 earnings report.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Check out the full Earnings Calendar list updated in real-time following this link.
Earnings And Revenue
Netflix EPS is expected to be around $3.15, according to sell-side analysts. Sales will likely be near $7.32 billion. In the same quarter last year, Netflix announced EPS of $1.59 on revenue of $6.15 billion.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to match the consensus estimate when it reports Tuesday, EPS would be up 98.11%. Sales would be up 19.06% from the year-ago period. Netflix's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 2.96 | 1.39 | 2.13 | 1.81 |
| EPS Actual | 3.75 | 1.19 | 1.74 | 1.59 |
| Revenue Estimate | 7.13 B | 6.63 B | 6.38 B | 6.08 B |
| Revenue Actual | 7.16 B | 6.64 B | 6.44 B | 6.15 B |
Stock Performance
Shares of Netflix were trading at $530.31 as of July 16. Over the last 52-week period, shares are up 8.09%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Netflix is scheduled to hold the call at 18:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
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