Netflix, the streaming service is getting ready to unveil its financial performance for the first quarter. Analysts are expecting the company to report earnings of $4.49, per share reflecting an increase of 55.9% compared to the period last year. Revenue forecasts paint an outlook with projected revenues reaching $9.26 billion showing a 13.4% growth year over year.
The recent consensus estimate for earnings per share (EPS) has been adjusted upward by 0.1% in the last month indicating analysts optimistic view on the stocks potential performance. This adjustment is a consideration leading up to the earnings announcement as historical data suggests a link between changes in earnings estimates and short term price movements of stocks.
Apart from revenue and EPS figures specific metrics are also under scrutiny in forecasts. Analysts predict that streaming revenues will make up a portion of revenues at $9.26 billion reflecting a 13.9% increase from the previous year. Geographically revenue from the United States and Canada is expected to reach $4.10 billion by 13.6% while revenue, from the Asia Pacific region is forecasted to rise to $1.05 billion marking a 12.6% growth.
American revenues are estimated to reach $1.13 billion showing a 5.5% increase while the Europe, Middle East and Africa (EMEA) region is set to experience growth of 18.3% to $2.98 billion.
The report will also offer insights, into Netflixs membership growth. Analysts predict that global paid net membership additions will hit 5,251.33 thousand marking a rise from the 1,751 thousand added in the quarter last year.
Concerning memberships Latin America is poised for an increase in paid memberships to 46,754.50 thousand from 41,249 thousand. The United States and Canada region (UCAN) are expected to reach 81,379.01 thousand paid memberships by the end of the period compared to 74,398 thousand. Asia Pacific memberships are also on a trajectory. Projected to climb to 46,843.30 thousand from last years reported figure of 39,478 thousand.
Moreover total global streaming memberships are forecasted to hit 265,902.60 thousand which signifies a surge from the years quarter figure of 232,498 thousand members. In the EMEA region specifically; paid memberships are anticipated at 90,925.74 thousand compared with years count of 77,.373 million members with an average revenue, per membership estimated at $11,.19 up from $10,.89 previously.
Netflixs stock has shown a return of +2.8%, in the month surpassing the Zacks S&P 500 composite, which saw a 0.9% decrease. With a Zacks Rank #3 (Hold) it suggests that Netflixs performance may closely mirror market trends in the future.
Investors and analysts are eagerly awaiting revenue and membership growth data from regions to better understand how Netflix is sustaining its growth momentum in the competitive streaming industry. These figures will shed light on the companys strategies and market position drawing interest, from stakeholders.