Netflix, Inc. ($NFLX) Earnings (Q1 FY22)

 Netflix, Inc. ($NFLX) Earnings and Opinion:


Netflix is a company in the Communication Services sector and operates in the Entertainment industry. The company offers entertainment services. Netflix was founded in 1997 and is currently headquartered in Los Gatos, California. The company first hit the stock market in 2002. 

Netflix, Inc. EPS and Revenue (Q1 FY22):

  • EPS of $3.53 beating expectations of $2.92
  • Revenue of $7.87B missing expectations of $7.95B
  • Loss of 200k subscribers during quarter
Netflix, Inc. Financial Highlights Q1:
  • Net Income of $1.6B
  • Operating margin of 25.1%
  • Expecting to lose over 2M subs next quarter
Opinion:
Netflix is a company that his been hit very hard since the start of this year and dating back too late last year. The company is now facing over 20% declines in after hours trading after posting some weak numbers this quarter. It wasn't the financial side that was bad, but the subscriber count is what is causing this decline. Netflix is losing steam especially after announcing an increase in monthly subscription prices. The outlook for next quarter doesn't look much better when it comes to subscribers. They are expecting to lose 2 million subscribers next quarter. This is horrible news for shareholders, especially for the ones who bought this stock at all time highs last year. The stock is down badly from those highs and will most likely take some time for them to recover back to those highs. My best advice is to not panic sell because they still have potential to turn it around. However, in the short term, I can see some more decline coming from here while they figure out how to bring more out of the business. It will be an interesting thing to watch, however I still see this as a pretty solid stock. They generate a pretty well net income and have some solid margins, so we shouldn't totally shun them yet. 


*Information from Netflix, Yahoo Finance, Nasdaq
*Estimates from Zacks

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