William Blair Raises FY2024 Earnings Forecast for Netflix

On October 18, 2024, William Blair analysts updated their earnings forecast for Netflix, Inc. (NASDAQ:NFLX). Analyst R. Schackart now anticipates that the popular streaming service will generate earnings of $19.67 per share for the fiscal year 2024, an increase from the previous estimate of $19.02. This projection is slightly above the consensus estimate for the current full-year earnings, which stands at $19.08 per share.

In addition to the 2024 earnings forecast, William Blair provided estimates for Netflix's upcoming earnings in the first half of 2025. The firm predicts an earnings per share (EPS) of $5.94 for Q1 2025, followed by an EPS of $5.93 for Q2 2025. For the third quarter of 2025, they expect earnings to rise slightly to $6.19 per share. Moreover, the full-year earnings estimates for 2025 and 2026 have also been released, with forecasts of $23.05 and $27.47 per share, respectively.

Other analysts have also recently evaluated Netflix’s potential. For instance, China Renaissance initiated coverage of Netflix with a "hold" recommendation and a $680.00 target price. Loop Capital raised its price target for Netflix shares from $750.00 to $800.00 while maintaining a "buy" rating. Similarly, Macquarie reaffirmed an "outperform" rating and set a price target of $795.00. Pivotal Research increased its target from $900.00 to $925.00 and rated the stock as a "buy." Evercore ISI also raised its price target from $750.00 to $775.00 while giving Netflix an "outperform" rating.

According to MarketBeat, two analysts have given Netflix a sell rating, nine have assigned a hold rating, and twenty-five have recommended buying the stock. Overall, Netflix currently holds an average rating of "Moderate Buy" with an average target price of $747.70.

Current Market Performance

As of Monday, Netflix shares opened at $764.24, showing a decrease of 1.0%. The stock has experienced considerable volatility over the past year, marking a low of $395.62 and a high of $773.00. Currently, Netflix shares have a fifty-day moving average of $701.48 and a two-hundred-day average of $657.11. Financial metrics reveal a debt-to-equity ratio of 0.55, a quick ratio of 0.95, and a current ratio of 0.95. The company's market capitalization is approximately $329.39 billion, with a price-to-earnings (P/E) ratio of 53.04 and a beta of 1.26.

Institutional Investments

Recent activity among institutional investors shows increased interest in Netflix. For example, Denver PWM LLC acquired a new stake in Netflix valued at $25,000. Valued Wealth Advisors LLC raised its stake in the company by 80% during the first quarter of this year and now holds 45 shares valued at $27,000. Furthermore, Indiana Trust & Investment Management CO boosted its stake by 112%, bringing their total shares to 53 and their valuation to $32,000. Proffitt & Goodson Inc. significantly increased their position by 380% in the second quarter, owning 48 shares valued at $32,000. Additionally, AlphaMark Advisors LLC expanded their stake by an impressive 642.9% in the same quarter.

Overall, institutional investors collectively own approximately 80.93% of Netflix's stock.

Insider Transactions

In recent insider activity, director Leslie J. Kilgore sold 358 shares of Netflix on October 18, 2024, for an approximate total of $273,870. After the sale, Kilgore retained 35,262 shares valued at roughly $26,975,430. This transaction reflects no significant change in her ownership percentage. On a previous occasion, CEO Gregory K. Peters sold 1,278 shares on August 6, 2024, aggregating to around $785,254.32, leaving him with 13,090 shares valued at about $8,043,019.60. Over the last three months, insiders have sold a total of 229,711 stock shares worth approximately $153,905,830, with insider ownership recorded at 1.76%.

Company Overview

Netflix, Inc. delivers a wide array of entertainment options, including TV series, documentaries, feature films, and games in various genres and languages. The company allows its subscribers to enjoy streaming content on multiple internet-connected devices, enhancing the overall viewing experience.

Overview of Featured Topics

• Five stocks we like better than Netflix
• Analyzing stock sentiment and its impact
• Forecasting Verizon’s double-digit returns in 2025
• Understanding how compound interest is calculated
• Assessing Roche's position in the weight-loss market
• Identifying the best stocks priced under $10.00
• Exploring key metrics of Roblox stock and entry points

Earnings, Forecast, Netflix