What is Wedbush's Estimate for Netflix FY2025 Earnings?

Key Points

• Wedbush has reduced its FY2025 earnings per share estimate for Netflix to $25.13, down from a previous forecast of $26.36, while maintaining an "Outperform" rating with a price target of $1,400.00.
• Netflix's most recent earnings report showed earnings of $5.87 per share, falling short of analysts' expectations of $6.88, despite a revenue of $11.51 billion which was close to projections.
• Institutional investors own 80.93% of Netflix's stock, with recent activity including Vanguard Group increasing its stake by 1.0%, now holding over 38 million shares.

Netflix, Inc. (NASDAQ:NFLX - Free Report) - Equities research analysts at Wedbush dropped their FY2025 earnings per share estimates for Netflix in a research note issued on Wednesday, October 22nd. Wedbush analyst A. Reese now forecasts that the Internet television network will post earnings per share of $25.13 for the year, down from their previous forecast of $26.36. Wedbush currently has a "Outperform" rating and a $1,400.00 target price on the stock. The consensus estimate for Netflix's current full-year earnings is $24.58 per share. Wedbush also issued estimates for Netflix's Q4 2025 earnings at $5.45 EPS, Q1 2026 earnings at $7.86 EPS, Q2 2026 earnings at $8.60 EPS, Q4 2026 earnings at $7.06 EPS, FY2026 earnings at $31.60 EPS, Q1 2027 earnings at $9.31 EPS, Q2 2027 earnings at $10.12 EPS and FY2027 earnings at $37.60 EPS.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share for the quarter, missing the consensus estimate of $6.88 by ($1.01). The firm had revenue of $11.51 billion during the quarter, compared to analysts' expectations of $11.52 billion. Netflix had a net margin of 24.05% and a return on equity of 42.45%. The business's revenue was up 17.2% compared to the same quarter last year. During the same quarter last year, the business earned $5.40 EPS. Netflix has set its FY 2025 guidance at EPS. Q4 2025 guidance at 5.450-5.450 EPS.

Several other equities analysts also recently weighed in on the company. UBS Group set a $1,500.00 target price on Netflix in a research report on Wednesday. Wall Street Zen lowered Netflix from a "buy" rating to a "hold" rating in a research report on Saturday, October 4th. Canaccord Genuity Group restated a "buy" rating and issued a $1,525.00 price target on shares of Netflix in a research report on Wednesday. Benchmark restated a "hold" rating on shares of Netflix in a research report on Wednesday. Finally, JPMorgan Chase & Co. dropped their price target on Netflix from $1,300.00 to $1,275.00 and set a "neutral" rating for the company in a research report on Wednesday. Two investment 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's stock. Based on data from MarketBeat, Netflix currently has an average rating of "Moderate Buy" and an average target price of $1,341.22.

Netflix Stock Performance

NASDAQ NFLX opened at $1,116.37 on Thursday. The company has a market cap of $474.38 billion, a PE ratio of 46.63, a price-to-earnings-growth ratio of 2.09 and a beta of 1.59. The stock's 50 day simple moving average is $1,212.43 and its 200-day simple moving average is $1,182.04. Netflix has a 1-year low of $744.26 and a 1-year high of $1,341.15. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.34 and a quick ratio of 1.34.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in Netflix by 1.0% during the second quarter. Vanguard Group Inc. now owns 38,379,084 shares of the Internet television network's stock worth $51,394,583,000 after purchasing an additional 381,824 shares in the last quarter. State Street Corp lifted its stake in Netflix by 2.1% during the second quarter. State Street Corp now owns 17,444,013 shares of the Internet television network's stock worth $23,359,801,000 after purchasing an additional 360,604 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Netflix by 2.7% during the first quarter. Price T Rowe Associates Inc. MD now owns 11,732,066 shares of the Internet television network's stock worth $10,940,505,000 after purchasing an additional 304,399 shares in the last quarter. Geode Capital Management LLC lifted its stake in Netflix by 2.4% during the second quarter. Geode Capital Management LLC now owns 9,926,733 shares of the Internet television network's stock worth $13,234,278,000 after purchasing an additional 229,182 shares in the last quarter. Finally, Norges Bank acquired a new position in Netflix during the second quarter worth $7,929,645,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Netflix

In related news, Director Reed Hastings sold 42,176 shares of the company's 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 value of $49,426,897.92. Following the transaction, the director directly owned 394 shares in the company, valued at approximately $461,736.48. This represents a 99.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Gregory K. Peters sold 2,026 shares of the company's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $1,157.44, for a total value of $2,344,973.44. Following the completion of the transaction, the chief executive officer 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. Insiders sold a total of 104,100 shares of company stock valued at $122,710,980 in the last ninety days. 1.37% of the stock is currently owned by corporate insiders.

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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