Earnings Preview: Netflix on Downward Trajectory
By:NewsyStocks   Thursday, January 12, 2022 1:22 PM



Netflix is scheduled to announce its fourth quarter financial numbers on January 25th, 2011. The company is currently going through a rough period and the quarterly earnings are expected to reflect the results. The company is expected to report its fourth quarter earnings at $0.70 per share. The company's net income is likely to be announced at $26.8 million.

Expectations

Analysts are expecting Netflix to report its fourth quarter revenue at $849.4 million, while its total cost of revenue is likely to stand at $587.1 million. Its total operating expenses are expected to be reported at $215.9 million. Netflix is likely to announce its operating income at $46.5 million. Netflix is likely to report its GAAP net income at $26.8 million. It had provided guidance in the range of $19 million and $37 million.

Third Quarter Results

Netflix had reported its third quarter revenue at $821.8 million. Its cost of revenue stood at $536.6 million. The company had reported its gross profit at $285.e million and its gross profit margin was 34.7 percent. Netflix's operating income for the third quarter of FY 2011 stood at $96.8 million and its operating margin as at 11.8 percent. The company had reported its net income for the quarter at $62.5 million.

Earnings History

Netflix is showing severely decreasing trend for its quarterly earnings. The company started off its Financial Year 2011 by announcing $1.24 in earnings per share for the first quarter. In second quarter, its earnings per share was reported at $1.43, which plummeted down to $1.33 In the third quarter of the financial year.

Punch Line

Netflix is receiving negative publicity on various fronts. The company was criticized for increasing its subscription rates, which resulted in mass exodus of subscribers. Netflix results are expected to be negatively impacted by this development. It is also facing increased competition. The video subscription company is carrying out international expansion aggressively, which is expected to have negative impact on short term financial numbers.

 

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