Netflix (NASDAQ:NFLX) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

by · The Markets Daily

Netflix (NASDAQ:NFLX – Get Free Report) issued its quarterly earnings data on Tuesday. The Internet television network reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.01, Zacks reports. Netflix had a net margin of 24.05% and a return on equity of 41.86%.

Netflix Stock Performance

Shares of NASDAQ NFLX traded down $0.81 during trading hours on Tuesday, reaching $87.19. 75,881,552 shares of the stock were exchanged, compared to its average volume of 44,944,340. The firm has a market capitalization of $369.44 billion, a price-to-earnings ratio of 36.42 and a beta of 1.71. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33. Netflix has a 52 week low of $82.11 and a 52 week high of $134.12. The stock’s fifty day simple moving average is $98.48 and its 200 day simple moving average is $112.51.

Insiders Place Their Bets

In other news, Director Bradford L. Smith sold 31,790 shares of the business’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $88.86, for a total value of $2,824,859.40. Following the completion of the sale, the director owned 79,690 shares of the company’s stock, valued at approximately $7,081,253.40. The trade was a 28.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Cletus R. Willems sold 2,380 shares of the firm’s stock in a transaction dated Thursday, November 6th. The stock was sold at an average price of $110.03, for a total transaction of $261,878.54. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,630,160 shares of company stock worth $171,076,053 over the last three months. 1.37% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Viking Global Investors LP bought a new position in shares of Netflix during the third quarter worth approximately $600,434,000. Worldquant Millennium Advisors LLC increased its stake in Netflix by 146.1% during the 2nd quarter. Worldquant Millennium Advisors LLC now owns 214,383 shares of the Internet television network’s stock worth $287,087,000 after acquiring an additional 127,278 shares during the period. Daiwa Securities Group Inc. increased its stake in Netflix by 18.3% during the 3rd quarter. Daiwa Securities Group Inc. now owns 609,984 shares of the Internet television network’s stock worth $731,321,000 after acquiring an additional 94,448 shares during the period. Freestone Grove Partners LP acquired a new stake in shares of Netflix during the 3rd quarter worth $106,661,000. Finally, Alyeska Investment Group L.P. increased its position in shares of Netflix by 73.2% in the third quarter. Alyeska Investment Group L.P. now owns 147,373 shares of the Internet television network’s stock worth $176,688,000 after purchasing an additional 62,269 shares during the period. Institutional investors and hedge funds own 80.93% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. Citic Securities dropped their target price on Netflix from $128.00 to $125.00 and set a “hold” rating for the company in a research report on Wednesday, October 29th. UBS Group set a $142.00 price target on Netflix in a report on Monday, December 8th. Seaport Res Ptn upgraded Netflix from a “hold” rating to a “strong-buy” rating in a report on Monday, October 6th. Hsbc Global Res upgraded shares of Netflix to a “strong-buy” rating in a research note on Monday, January 12th. Finally, KeyCorp set a $110.00 price objective on shares of Netflix and gave the stock an “overweight” rating in a research note on Friday. Two investment analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $127.13.

View Our Latest Stock Report on NFLX

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

  • Positive Sentiment: Holiday/streaming momentum and product upgrades — Netflix reported stronger engagement metrics (viewership +10% in recent streaming data) and is testing a “voting” feature, which together signal healthy content-driven growth that could support subscriber and ad revenue beat potential in Q4. Netflix Stock (NFLX) Rises Ahead of Q4 on Streaming Gains, Voting Feature
  • Positive Sentiment: Content tailwinds into earnings — Several outlets and analysts point to a strong holiday season (final season of Stranger Things, NFL games, other hits) that could drive upside to engagement, subscriber metrics and ad monetization on the Q4 report. From NFL Games to Stranger Things, Netflix Just Had Its Biggest Holiday Season Ever
  • Neutral Sentiment: Earnings expectations and event risk — NFLX reports Q4 after the bell with Street estimates (consensus EPS and revenue targets) and options-implied moves near ~7–8%, meaning the stock is set up for a sizeable short-term swing regardless of direction. Traders should expect heightened volatility around the release. Netflix reports earnings after the bell. Here’s what to expect
  • Negative Sentiment: All-cash Warner Bros. Discovery bid raises financing and leverage concerns — Netflix amended the deal to an all-cash structure (same headline price) to secure board/shareholder support and fend off Paramount, but that increases near-term cash needs and investor worry about leverage and integration risk. Netflix submits amended all-cash offer for Warner Bros, wins board support
  • Negative Sentiment: Debt and financing details emerging — Reports say Netflix has secured more bank debt to fund the amended all-cash offer, a development that can pressure margins/credit metrics and fuel investor concern if earnings or cash flow disappoint. Netflix secures more debt from banks to buy Warner’s assets under new all-cash offer
  • Negative Sentiment: Analyst pressure and valuation adjustments — Some firms have trimmed targets and warned the Warner deal could overshadow core growth; KeyBanc cut its price target recently, reflecting near-term uncertainty. KeyBanc cuts PT on Netflix, Inc. (NFLX) to $110 from $139
  • Negative Sentiment: Insider selling noted — Recent director-level share sales have been flagged by filings; while not uncommon, insider disposals can add to negative sentiment ahead of a major earnings and M&A moment. Insider Selling: Netflix Director Sells $2.8M in Stock

Netflix Company Profile

(Get Free Report)

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.

Further Reading