Netflix Gearing up for Earnings Report as Stock Declines

On Thursday, Netflix (NFLX) will be releasing their first quarterly earnings report for 2024, and it looks like investors are preparing for a less than stellar showing.

Ahead of the earnings report, Netflix stock has dropped 2.75% Monday. This is the sharpest single-day drop by far that the stock has experienced in over a month, and it bodes poorly for shareholder faith in the company.

We have a scenario play out for Netflix repeatedly where the company pushes a ton of new content that costs it billions of dollars and then does not have the sales revenue to justify its spending. Will we see a repeat of those kinds of disappointing sales figures this quarter?

What Is Netflix’s Expectation?

Netflix is anticipating an increase of $4.49 per share for this quarter and for sales to be up by more than 55%. These extremely hopeful predictions are based on current data from the company which does indeed show that shares are up by the expected $4.49.

The expectation is also that sales will have increased by about 13% from the previous year. That would place sales for this fiscal year at $9.24 billion. Financial firms estimate that Netflix is already past that by $60 million.

If current estimates are correct, then Netflix shareholders should have nothing to worry about, except when it comes to future projects from Netflix. How will the streaming service top its current earnings for the next quarter?

There are a few projects coming out that could be big hits for the service, including Rebel Moon Part 2, Honeymoonish, and Dead Boy Detectives all hitting the service very soon, with Bridgerton Season 3 and Squid Game Season 2 dropping later in the year. Will these and other offerings from Netflix be enough to convince investors that the company has a strong lineup plan and is putting its spending money to good use? We will see on Thursday when the earnings report is released.