Seaport Res Ptn Has Negative View of Netflix FY2025 Earnings

Key Points

• Seaport Res Ptn has revised its FY2025 earnings per share (EPS) estimate for Netflix down to $25.09, from a previous estimate of $26.26, while maintaining a "Strong-Buy" rating on the stock.
• Netflix reported Q3 earnings of $5.87 per share, missing analysts' expectations of $6.88, despite a year-over-year revenue increase of 17.2%.
• Institutional investors own 80.93% of Netflix's stock, indicating strong institutional support, while CEO Theodore Sarandos recently sold shares, reducing his holdings by 11.78%.

Netflix, Inc. (NASDAQ:NFLX - Free Report) - Equities researchers at Seaport Res Ptn dropped their FY2025 EPS estimates for Netflix in a note issued to investors on Wednesday, October 22nd. Seaport Res Ptn analyst D. Joyce now forecasts that the Internet television network will post earnings per share of $25.09 for the year, down from their previous estimate of $26.26. Seaport Res Ptn has a "Strong-Buy" rating on the stock. The consensus estimate for Netflix's current full-year earnings is $24.58 per share. Seaport Res Ptn also issued estimates for Netflix's Q4 2025 earnings at $5.42 EPS, Q3 2026 earnings at $7.44 EPS, Q4 2026 earnings at $6.67 EPS and FY2026 earnings at $30.29 EPS.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Tuesday, October 21st. The Internet television network reported $5.87 EPS for the quarter, missing the consensus estimate of $6.88 by ($1.01). Netflix had a return on equity of 41.86% and a net margin of 24.05%.The business had revenue of $11.51 billion for the quarter, compared to analyst estimates of $11.52 billion. During the same quarter last year, the company earned $5.40 EPS. The business's revenue for the quarter was up 17.2% compared to the same quarter last year. 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 commented on NFLX. BMO Capital Markets reissued an "outperform" rating and set a $1,425.00 price objective (up previously from $1,200.00) on shares of Netflix in a report on Tuesday, July 15th. Argus set a $1,410.00 target price on Netflix in a research report on Thursday. The Goldman Sachs Group dropped their price target on shares of Netflix from $1,310.00 to $1,300.00 and set a "neutral" rating on the stock in a research report on Tuesday, September 30th. Pivotal Research reaffirmed a "buy" rating on shares of Netflix in a report on Thursday, July 10th. Finally, Canaccord Genuity Group reiterated a "buy" rating and issued a $1,525.00 target price on shares of Netflix in a research note on Wednesday. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $1,352.78.

Netflix Trading Down 0.2%

Netflix stock opened at $1,113.59 on Friday. Netflix has a one year low of $746.25 and a one year high of $1,341.15. The company's fifty day moving average price is $1,210.10 and its two-hundred day moving average price is $1,183.73. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.34. The company has a market capitalization of $473.20 billion, a price-to-earnings ratio of 46.52, a PEG ratio of 1.89 and a beta of 1.59.

Institutional Investors Weigh In On Netflix

Several institutional investors and hedge funds have recently bought and sold shares of the business. Norges Bank bought a new stake in Netflix in the second quarter valued at about $7,929,645,000. Laurel Wealth Advisors LLC grew its stake in shares of Netflix by 128,553.9% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 4,881,129 shares of the Internet television network's stock valued at $6,536,466,000 after purchasing an additional 4,877,335 shares during the period. Nuveen LLC acquired a new position in shares of Netflix in the 1st quarter worth approximately $2,385,585,000. Kingstone Capital Partners Texas LLC lifted its position in shares of Netflix by 343,058.2% during the 2nd quarter. Kingstone Capital Partners Texas LLC now owns 2,463,876 shares of the Internet television network's stock worth $3,299,450,000 after buying an additional 2,463,158 shares during the period. Finally, Goldman Sachs Group Inc. boosted its stake in Netflix by 57.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,393,064 shares of the Internet television network's stock valued at $3,164,134,000 after buying an additional 1,236,251 shares in the last quarter. Institutional investors own 80.93% of the company's stock.

Insider Buying and Selling at Netflix

In other news, CEO Theodore A. Sarandos 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 $1,160.62, for a total transaction of $2,351,416.12. Following the sale, the chief executive officer owned 15,168 shares of the company's stock, valued at approximately $17,604,284.16. This trade represents a 11.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Reed Hastings sold 42,176 shares of the company's stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $1,171.92, for a total value 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. The trade was a 99.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 104,100 shares of company stock valued at $122,710,980 over the last quarter. Company insiders own 1.37% 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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