Netflix (NFLX) reported the fourth quarter earnings after the closing bell, disappointing in the EPS. but beating the paid net additions. Here are the key figures:
EPS came at $0.12 well below the forecasts of $0.44 due to a $462M non-cash unrealized loss from the F/X remeasurement on our Euro denominated debt as a result of the depreciation of the US dollar vs. the Euro during Q4’22.
Revenue came at $7.85 billion mostly in line with analysts’ expectations.
Global paid net subscribers were 7.66 million additions, topping the Wall Street expectations of 4.57 million subscribers.
Operating income of $550M in Q4 was down vs. $632M in Q4 ‘21.
Operating margin for Q4 amounted to 7% compared to 8% in Q4’21.
Gross debt at quarter end totalled $14B, in line with the targeted range of $10-$15B. With cash and short-term investments of $6B, net debt totalled $8B
For 2022, Netflix finished with 231M paid memberships and generated $32B of revenue, $5.6B in operating income, $2.0B of net cash from operating activities and $1.6B of free cash flow (FCF).
During the Q3 company results presentation, the company forecasted Q4 earnings of $0.36 per share, with revenue for the period expected to be $7.78 billion. The company now expects $4.5 million paid net adds compared to 8.3 million in Q4 2021.
Netflix founder Reed Hastings will step down from the CEO role and will remain on as chairman. Ted Sarandos and Greg Peters were now co-CEOs of the company.
Netflix Q1 2023 Forecasts
The company now forecast Q1’23 revenue growth of 4%, revenue growth to be driven by a combination of year over year growth in average paid memberships and ARM. Modest positive paid net adds in Q1 ‘23 (vs. paid net adds of -0.2M in Q1’22).
Netflix third-quarter results
Netflix Inc (NFLX) reported strong third-quarter results that topped market expectations. The third-quarter revenue came up to $7.93 billion, a 5.9% increase year-over-year ($7.48 billion in the same period a year ago), beating the consensus estimate of $7.84 billion. The earnings reported at $1.4 billion or $3.10 per share, also above the analyst’s expectations of $2.13. The same quarter’s earnings for the previous year were at $3.16 a share.
The worldwide streaming paid net additions came up to 2.4 million topping the Wall Street expectations of 1 million.
Netflix NFLX Stock Price
Netflix stock has established an impressive uptrend since mid-June and managed to return above all the major moving averages.
The recent top at $336.65 is the first resistance level, while more pressure would be met at 351.68 the high from April 19, 2022.
On the other hand, initial support stands at $311.07 the low from January 10. A break below would open the way for the 50-day moving average at $300.71.Below that level bears would take control for the short term targeting the 100-day moving average at $272.73.
The stock has received many upgrades and analysts raised the price target. On January 18, Truist Securities raised the price target from $210 to $339, and on January 17, UBS raised the price target from $250 to $350. Oppenheimer on January 10, set the highest price target for NFLX stock at $400.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).