Netflix NFLX is set to report second-quarter 2020 results on Jul 16.
The company forecasts its second-quarter earnings to be $1.81 per share, implying year-over-year growth of 201.7%.
The Zacks Consensus Estimate is currently pegged at $1.83 per share, unchanged over the past 30 days. However, the figure indicates 205% growth from the year-ago quarter’s reported figure.
Moreover, total revenues are anticipated to be $6.05 billion, up 22.8% year over year. The consensus mark for second-quarter revenues is currently pegged at $6.08 billion, suggesting 23.6% growth from the figure reported in the year-earlier quarter.
Notably, the company boasts a stellar earnings history, beating the Zacks Consensus Estimate in three of the trailing four quarters, missing in one, the average positive surprise being 48.7%.
Netflix, Inc. Price and EPS Surprise
Netflix, Inc. price-eps-surprise | Netflix, Inc. Quote
Let’s see how things are shaping up for this announcement.
Coronavirus Outbreak Likely to Aid Subscriber Growth
Netflix’s solid content portfolio is expected to have aided it in gaining new subscribers in second-quarter 2020. Increased consumption of media content on the Internet as more and more people were compelled to stay at home due to coronavirus-induced social distancing and lockdowns has been another major driver.
Netflix is ahead in the streaming race despite increased competition from the launch of new services like Disney+ from Disney DIS and Apple TV+ from Apple AAPL and existing services like Amazon AMZN prime video.
Courtesy of its diversified content portfolio, which is attributable to its heavy investments in production and distribution of localized, foreign-language content and an expanding international footprint, Netflix is expected to have hugely benefited from this upswing.
Netflix expects its second-quarter paid subscriber addition to be 7.50 million, much higher than 2.70 million added in the year-ago quarter but down from 15.77 million it added in the previous quarter. This Zacks Rank #3 (Hold) company projects to have 190.36 million paid subscribers globally, up 25.6% from the year-ago quarter at the end of second-quarter 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for paid total streaming net membership addition is pegged at 7.79 million, down from 15.77 million added in the previous quarter.
The consensus mark for Asia Pacific net subscription addition is pegged at 2.12 million, down from 3.6 million reported in the previous quarter.
The United States and Canada net subscription addition is pegged at 0.9 million, indicating a decline from 2.30 million reported in the previous quarter.
Moreover, the consensus mark for Europe, Middle East & Africa net subscription addition stands at 2.92 million, suggesting a fall from 6.96 million that the company added in the previous quarter.
Further, the Zacks Consensus Estimate for Latin America is pegged at 1.7 million down from 2.9 million in the previous quarter.
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