Netflix (NFLX) is scheduled to announce its first-quarter financial results after the market closes on Thursday. Analysts are forecasting earnings per share of $0.76 and revenue of $12.18 billion.
This projected earnings figure represents a 15% increase for Netflix compared to the same period last year. Revenue is anticipated to grow by approximately 15.5% year-over-year.
Options traders are pricing in a potential stock price swing of around 7% in either direction following the earnings release. This implied volatility exceeds the streaming service provider's average post-earnings move of about 4.7% over the past four quarters.
KeyBanc Capital Markets analyst Justin Patterson recently raised his price target for Netflix from $108 to $115, while maintaining an "Overweight" rating. He highlighted that pricing adjustments and the company's advertising-supported tier are contributing to steady growth momentum.
Investors are likely to focus on Netflix's subscriber growth, progress with its ad-supported plan, and full-year financial guidance. These metrics will serve as indicators for assessing whether the recent price increases have impacted customer retention rates.
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