Netflix (NASDAQ:NFLX) earnings for first quarter of 2020 are dropping NFLX stock up after-hours Tuesday. That comes after diluted earnings per share (EPS) of $1.57 missed Wall Street’s estimate of $1.65. On the other hand, the subscription streaming company’s revenue of $5.77 billion is better than analysts’ estimates of $5.76 billion.
Here’s a deeper dive into the most recent Netflix earnings report.
- Diluted per-share earnings are 117.11% higher compared to 76 cents in the same period of the year prior.
- Revenue for the quarter is sitting 27.65% above the $4.52 billion reported in the first quarter of 2019.
- Operating income of $958.26 million is a 108.73% jump year-over-year from $459.08 million.
- The Netflix earnings report also has it bringing in a net income of $709.07 million.
- That’s a 106.1% increase from its net income of $344.05 million during the same time last year.
Netflix’s letter to shareholders says this about how the novel coronavirus is affecting NFLX stock earnings:
“There are three primary effects on our financial performance from the crisis. First, our membership growth has temporarily accelerated due to home confinement. Second, our international revenue will be less than previously forecast due to the dollar rising sharply. Third, due to the production shutdown, some cash spending on content will be delayed, improving our free cash flow, and some title releases will be delayed, typically by a quarter.”
Netflix still provides an outlook for Q2 2020 in its earnings report. It’s expecting diluted EPS of $1.81 on revenue of $6.05 billion. Wall Street’s estimates are for diluted EPS of $1.54 on revenue of $5.97 billion.
NFLX stock was down slightly after-hours Tuesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
