Netflix shares rise on strong subscriber growth, considers share buybacks

Earnings

(L-R) Reed Hastings and Ted Sarandos attend the “Marseille” Netflix TV Serie World Premiere At Palais Du Pharo In Marseille, on May 4, 2016 in Marseille, France.

Stephane Cardinale | Corbis | Getty Images

Netflix is set to report earnings for the fourth quarter of 2020 after the bell on Tuesday.

Here are the key numbers analysts are looking for:

  • Earnings per share (EPS): $1.39 expected, according to Refinitiv survey of analysts
  • Revenue: $6.626 billion expected, according to Refinitiv
  • Global paid net subscriber additions: 6.47 million expected, according to FactSet

Executives continued to guide subscriber additions below that of previous quarters in its last report, citing the uncertainty created by the pandemic. But they said last quarter growth should return to pre-Covid levels as the world recovers.

Despite production delays prompted by global shutdowns, Netflix still announced a huge slate of programming for 2021. The company will release at least one new movie every week this year.

Netflix has been free-cash-flow positive for three straight quarters but said it expects to be slightly negative in the fourth quarter with production restarting in many regions.

Meanwhile, Netflix has more competition than ever in the streaming video space. Discovery just launched its Discovery+ service in the U.S., and ViacomCBS announced Tuesday its Paramount+ service will launch on March 4. Those should be the last two major streaming video service launches.

This story is developing. Check back for updates.

Subscribe to CNBC on YouTube.

WATCH: What will happen to your favorite shows?

Articles You May Like

Home Depot misses on revenue, as high interest rates hurt sales
Goldman Sachs and American Express are among the leading companies for working parents in 2024, new study shows
Trump-era tax cuts set to expire after 2025 — here’s what you need to know
Stocks making biggest moves premarket: Under Armour, Walmart, AMC, GameStop, Canada Goose and more
Activist Elliott settles for a new director at Sensata. These next steps may help boost shares

Leave a Reply

Your email address will not be published. Required fields are marked *