Netflix (NASDAQ:NFLX) Issues Q3 Earnings Guidance

Netflix (NASDAQ:NFLX) issued an update on its third quarter earnings guidance on Thursday morning. The company provided EPS guidance of $5.10 for the period, compared to the consensus EPS estimate of $4.74. The company issued revenue guidance of $9.727 billion, compared to the consensus revenue estimate of $9.81 billion.

Netflix Price Performance

Netflix stock traded down $4.42 during midday trading on Thursday, reaching $643.04. The company’s stock had a trading volume of 5,581,231 shares, compared to its average volume of 3,893,460. Netflix has a fifty-two week low of $344.73 and a fifty-two week high of $697.49. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.07 and a current ratio of 1.07. The stock’s 50 day simple moving average is $654.66 and its 200 day simple moving average is $601.13. The firm has a market capitalization of $277.15 billion, a PE ratio of 44.80, a P/E/G ratio of 1.42 and a beta of 1.27.

Netflix (NASDAQ:NFLX) last released its earnings results on Thursday, April 18th. The Internet television network reported $5.28 EPS for the quarter, beating analysts’ consensus estimates of $4.51 by $0.77. The company had revenue of $9.37 billion during the quarter, compared to the consensus estimate of $9.28 billion. Netflix had a return on equity of 29.62% and a net margin of 18.42%. Netflix’s quarterly revenue was up 14.8% compared to the same quarter last year. During the same quarter last year, the company earned $2.88 earnings per share. On average, equities research analysts forecast that Netflix will post 18.35 earnings per share for the current year.

Analysts Set New Price Targets

A number of analysts recently commented on the company. TD Cowen lifted their price objective on Netflix from $725.00 to $775.00 and gave the stock a buy rating in a research report on Tuesday, July 9th. CICC Research began coverage on Netflix in a research report on Thursday, May 2nd. They set an outperform rating and a $650.00 price objective for the company. Piper Sandler upped their price objective on shares of Netflix from $550.00 to $600.00 and gave the company a neutral rating in a research note on Friday, April 12th. Bank of America upped their price objective on shares of Netflix from $700.00 to $740.00 and gave the company a buy rating in a research note on Monday. Finally, Canaccord Genuity Group downgraded shares of Netflix from a buy rating to a hold rating and dropped their price objective for the company from $720.00 to $585.00 in a research note on Friday, April 19th. One equities research analyst has rated the stock with a sell rating, twelve have given a hold rating and twenty-four have given a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of Moderate Buy and an average price target of $653.14.

Insider Activity

In other news, Chairman Reed Hastings sold 18,361 shares of the firm’s stock in a transaction on Wednesday, May 1st. The stock was sold at an average price of $551.54, for a total transaction of $10,126,825.94. Following the transaction, the chairman now directly owns 28 shares of the company’s stock, valued at $15,443.12. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, Chairman Reed Hastings sold 18,361 shares of the firm’s stock in a transaction dated Wednesday, May 1st. The stock was sold at an average price of $551.54, for a total transaction of $10,126,825.94. Following the completion of the transaction, the chairman now owns 28 shares of the company’s stock, valued at $15,443.12. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Gregory K. Peters sold 4,783 shares of the firm’s stock in a transaction dated Friday, June 14th. The shares were sold at an average price of $675.00, for a total value of $3,228,525.00. Following the transaction, the chief executive officer now directly owns 13,090 shares of the company’s stock, valued at approximately $8,835,750. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 71,385 shares of company stock valued at $44,469,351. Company insiders own 1.76% 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.