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Los Angeles – Netflix It is scheduled to report fourth-quarter earnings after the closing bell on Tuesday.
Wall Street will be paying close attention to the details surrounding the company's ad-supported business model, its recent batch of live sporting events and the password campaign's continuing impact on subscriber numbers.
After all, this is expected to be the last time Netflix will report subscriber data to shareholders, as it plans to focus on revenue and other financial metrics as indicators of performance.
Here's what Wall Street expects for the company's fourth quarter:
- EPS: $4.20, according to LSEG
- profit: $10.11 billion, according to LSEG
- Paid memberships: 290.9 million, according to StreetAccount
“Netflix has made an almost insurmountable lead in the streaming wars,” Wedbush analyst Alicia Reese wrote in a recent research note. “Netflix can maintain its moat while competitors try to replicate its business model. Even as Netflix ends its password-sharing campaign, we expect its ad tier to drive revenue growth for several years. To date, ad tier input has been limited, resulting in less pressure is adding new subscribers, with at least 30 million accounts converting to the ad tier in the past six months.
Rees noted that Netflix is positioned to accelerate revenue from its advertising tier as it continues to add more live events, improve ad targeting and forge new partnerships. It said it expects Netflix's advertising level to be the primary driver of growth by 2026.
This is a breaking news story. Please check back for updates.
