Published on 16 Apr 2024 on Zacks via Yahoo Finance
What Lies in Store for Netflix ETF in Q1 Earnings?
Netflix NFLX is set to release first-quarter 2024 results on Apr 18 after market close. It is worth taking a look at the fundamentals of the world’s largest video-streaming company ahead of its results.Netflix shares have risen about 26% over the past three months, outperforming the broader industry, which has gained 5.3% in the same time frame. The solid trading is expected to continue as Netflix has a reasonable chance to beat earnings estimates (read: 5 Beaten-Down Top-Ranked Stocks to Buy in S&P 500 ETF).As a result, ETFs with the largest allocation to this streaming giant, like MicroSectors FANG+ ETN FNGS, Invesco Next Gen Media and Gaming ETF GGME, Pacer BioThreat Strategy ETF VIRS First Trust S-Network Streaming & Gaming ETF BNGE and First Trust Dow Jones Internet Index Fund FDN are in focus.
Earnings Whispers
Netflix has an Earnings ESP of +0.36% and a Zacks Rank #3 (Hold). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. The online video-streaming giant saw no earnings estimate revision over the past seven or 30 days for the to-be-reported quarter. Netflix is expected to record earnings growth of 55.9% and revenue growth of 13.4% for the to-be-reported quarter. The company’s earnings surprise history is impressive, as it delivered an earnings surprise of 5.43%, on average, over the past four quarters. Netflix belongs to a bottom-ranked Zacks industry (placed at the bottom 7% of 250+ industries).Netflix currently has an average brokerage recommendation (ABR) of 1.96 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 40 brokerage firms. The current ABR compares to an ABR of 1.96 a month ago based on 40 recommendations.Of the 40 recommendations deriving the current ABR, 22 are Strong Buy and one is Buy. Strong Buy and Buy, respectively, account for 55% and 2.5% of all recommendations. A month ago, Strong Buy made up 55%, while Buy represented 2.5%.Based on short-term price targets offered by 34 analysts, the average price target for Netflix is $609.56. The forecasts range from a low of $335.00 to a high of $765.00.