FY2025 Earnings Forecast for Netflix Issued By William Blair

Key Points

• William Blair has revised its FY2025 earnings per share estimate for Netflix from $25.82 to $25.12, slightly above the consensus estimate of $24.58.
• Netflix reported a Q3 EPS of $5.87, falling short of the consensus estimate of $6.88, despite a 17.2% year-over-year revenue increase to $11.51 billion.
• Despite recent performance, analysts remain optimistic with a consensus rating of "Moderate Buy" and a price target of $1,352.78 for Netflix stock.

Netflix, Inc. (NASDAQ:NFLX - Free Report) - Research analysts at William Blair dropped their FY2025 earnings per share estimates for shares of Netflix in a report issued on Wednesday, October 22nd. William Blair analyst R. Schackart now forecasts that the Internet television network will earn $25.12 per share for the year, down from their previous estimate of $25.82. The consensus estimate for Netflix's current full-year earnings is $24.58 per share.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share (EPS) for the quarter, missing the consensus estimate of $6.88 by ($1.01). Netflix had a net margin of 24.05% and a return on equity of 41.86%. The business had revenue of $11.51 billion for the quarter, compared to analyst estimates of $11.52 billion. During the same period in the prior year, the company earned $5.40 earnings per share. The company's quarterly revenue was up 17.2% on a year-over-year basis. Netflix has set its FY 2025 guidance at EPS. Q4 2025 guidance at 5.450-5.450 EPS.

A number of other brokerages have also weighed in on NFLX. Citigroup reissued a "neutral" rating and set a $1,295.00 price objective (up from $1,280.00) on shares of Netflix in a report on Friday, October 3rd. Weiss Ratings restated a "buy (b)" rating on shares of Netflix in a research note on Wednesday, October 8th. Cowen reiterated a "buy" rating on shares of Netflix in a research report on Tuesday, October 7th. Wells Fargo & Company lowered their price objective on Netflix from $1,560.00 to $1,510.00 and set an "overweight" rating on the stock in a research report on Wednesday. Finally, Rosenblatt Securities boosted their target price on shares of Netflix from $1,515.00 to $1,530.00 and gave the company a "buy" rating in a research note on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,352.78.

Netflix Stock Performance

NFLX opened at $1,113.59 on Friday. The company has a market cap of $473.20 billion, a P/E ratio of 46.52, a price-to-earnings-growth ratio of 1.89 and a beta of 1.59. Netflix has a 52-week low of $746.25 and a 52-week high of $1,341.15. The company has a quick ratio of 1.34, a current ratio of 1.33 and a debt-to-equity ratio of 0.56. The firm's 50-day moving average price is $1,210.10 and its 200-day moving average price is $1,183.73.

Insider Activity

In other Netflix news, Director Reed Hastings sold 42,176 shares of the stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $1,171.92, for a total transaction of $49,426,897.92. Following the completion of the transaction, the director owned 394 shares of the company's stock, valued at $461,736.48. This represents a 99.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Gregory K. Peters sold 2,026 shares of Netflix stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $1,157.44, for a total value of $2,344,973.44. Following the completion of the sale, the chief executive officer directly owned 12,781 shares in the company, valued at $14,793,240.64. This represents a 13.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 104,100 shares of company stock worth $122,710,980. Company insiders own 1.37% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC raised its holdings in Netflix by 5.0% in the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock valued at $4,804,000 after acquiring an additional 257 shares during the last quarter. Revolve Wealth Partners LLC grew its position in shares of Netflix by 16.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock valued at $912,000 after purchasing an additional 144 shares in the last quarter. GAMMA Investing LLC increased its holdings in shares of Netflix by 17.6% in the first quarter. GAMMA Investing LLC now owns 9,475 shares of the Internet television network's stock valued at $8,836,000 after purchasing an additional 1,415 shares during the last quarter. Daymark Wealth Partners LLC lifted its position in Netflix by 3.4% during the first quarter. Daymark Wealth Partners LLC now owns 1,659 shares of the Internet television network's stock worth $1,547,000 after buying an additional 54 shares in the last quarter. Finally, Omnia Family Wealth LLC boosted its stake in Netflix by 10.3% during the first quarter. Omnia Family Wealth LLC now owns 450 shares of the Internet television network's stock worth $420,000 after buying an additional 42 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

About Netflix

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.

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