Netflix (NASDAQ:NFLX) Releases Earnings Results, Misses Expectations By $1.01 EPS

Key Points

• Netflix reported an earnings per share (EPS) of $5.87 for the quarter, which missed analysts' expectations of $6.88 by $1.01.
• The company's revenue increased by 17.2% year-over-year to $11.51 billion, slightly below the $11.52 billion estimate.
• As part of insider trading, CEO Gregory K. Peters sold 2,026 shares, reducing his ownership by 13.68%, while overall insider sales in the last quarter totaled over 104,000 shares worth nearly $123 million.

Netflix (NASDAQ:NFLX - Get Free Report) released its earnings results on Tuesday. The Internet television network reported $5.87 EPS for the quarter, missing analysts' consensus estimates of $6.88 by ($1.01), Briefing.com reports. Netflix had a return on equity of 42.50% and a net margin of 24.58%.The firm had revenue of $11.51 billion for the quarter, compared to analyst estimates of $11.52 billion. During the same period last year, the firm earned $5.40 EPS. The company's revenue for the quarter was up 17.2% compared to the same quarter last year. Netflix updated its FY 2025 guidance to EPS and its Q4 2025 guidance to 5.450-5.450 EPS.

Netflix Price Performance

Shares of NFLX stock traded up $2.79 during trading hours on Tuesday, hitting $1,241.35. 6,330,089 shares of the company's stock were exchanged, compared to its average volume of 3,909,325. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.58. The firm has a market cap of $527.48 billion, a P/E ratio of 52.89, a P/E/G ratio of 2.02 and a beta of 1.59. The firm has a 50 day moving average of $1,213.87 and a two-hundred day moving average of $1,182.08. Netflix has a fifty-two week low of $744.26 and a fifty-two week high of $1,341.15.

Insider Buying and Selling at Netflix

In other news, CEO Gregory K. Peters sold 2,026 shares of the company's 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 transaction of $2,344,973.44. Following the completion of the transaction, the chief executive officer directly owned 12,781 shares of the company's stock, valued at $14,793,240.64. This represents a 13.68% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider David A. Hyman sold 424 shares of the business's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $1,158.67, for a total value of $491,276.08. Following the sale, the insider owned 31,610 shares of the company's stock, valued at $36,625,558.70. The trade was a 1.32% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 104,100 shares of company stock worth $122,710,980. 1.37% of the stock is currently owned by corporate insiders.

Institutional Trading of Netflix

Several large investors have recently made changes to their positions in NFLX. Strategic Wealth Investment Group LLC purchased a new stake in Netflix in the 2nd quarter valued at $121,000. Osterweis Capital Management Inc. lifted its stake in shares of Netflix by 41.9% in the 2nd quarter. Osterweis Capital Management Inc. now owns 149 shares of the Internet television network's stock valued at $200,000 after purchasing an additional 44 shares during the last quarter. SkyView Investment Advisors LLC acquired a new position in Netflix in the second quarter valued at about $217,000. FSB Premier Wealth Management Inc. purchased a new position in Netflix during the second quarter worth about $226,000. Finally, Global View Capital Management LLC purchased a new position in Netflix during the second quarter worth about $232,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Canaccord Genuity Group reaffirmed a "buy" rating on shares of Netflix in a report on Thursday, July 10th. Citigroup reaffirmed a "neutral" rating and set a $1,295.00 target price (up previously from $1,280.00) on shares of Netflix in a report on Friday, October 3rd. KeyCorp lifted their target price on Netflix from $1,070.00 to $1,390.00 and gave the stock an "overweight" rating in a report on Thursday, July 10th. Jefferies Financial Group reissued a "buy" rating on shares of Netflix in a report on Tuesday, October 14th. Finally, Zacks Research downgraded Netflix from a "strong-buy" rating to a "hold" rating in a report on Monday, September 1st. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Netflix currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,339.81.

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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