Shares of streaming giant Netflix (NASDAQ:NFLX) gained in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2023. Earnings per share came in at $2.11, which missed analysts’ consensus estimate of $2.22 per share. Sales increased by 12.5% year-over-year, with revenue hitting $8.83 billion. This beat analysts’ expectations by $120 million. In addition, global streaming paid memberships increased to 260.8 million users, which equates to a 13.12 million user jump in the fourth quarter. Meanwhile, analysts had forecast 256 million users.
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Looking forward, management now expects revenue and adjusted earnings per share for Q1 2024 to be $9.24 billion and $4.49, respectively. For reference, analysts were expecting $9.26 billion in revenue, along with an adjusted EPS of $4.14.
Is NFLX a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 19 Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 35% rally in its share price over the past year, the average NFLX price target of $511.92 per share implies 4.25% upside potential.
