The streaming giant Netflix (NFLX) is set to release fourth-quarter 2024 earnings on January 21. Wall Street analysts expect the company to report earnings of $4.21 versus $2.11 per share reported in the prior-year period. Meanwhile, analysts expect revenues of 10.11 billion, reflecting a 14.5% year-over-year increase, according to TipRanks’ data.
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Interestingly, Netflix has an encouraging earnings surprise history. The company exceeded earnings estimates in seven out of the previous nine quarters.
Analysts’ Have Mixed Opinions about NFLX Ahead of Q4 Earnings
Ahead of Netflix’s earnings announcement, analysts have mixed views on the stock. Among the optimistic analysts, Mark Mahaney of Evercore ISI, maintained an Outperform rating with a $950 price target. He anticipates a modest beat in Q4 results, driven by strong content and live events, though partially impacted by FX headwinds.
In contrast, Monness analyst Brian White took a neutral position on Netflix, issuing a Hold rating. Despite an impressive 83% growth in 2024, fueled by new initiatives and robust margins, White remains concerned about sustainability amid fierce competition and high valuations. While he expects 16% revenue growth in Q4, the analyst is wary of the ongoing macroeconomic instability and FX headwinds.
NFLX’s Website Traffic Shows Growth
TipRanks’ website traffic screener reveals that NFLX’s traffic increased sequentially and year-over-year in Q4. According to the tool, the number of visits to netflix.com increased by 70.66% year over year in Q4. Moreover, website traffic jumped 14.88% sequentially.
Insights from Options Trading Activity
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 8.87% move in either direction.
Is Netflix a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 21 Buys and seven Holds assigned in the past three months, as indicated by the graphic below. After a 45% gain in its share price over the past year, the average NFLX price target of $951.60 per share implies about 10.9% upside potential.
