Netflix earnings: NFLX stock drops 1% on mixed Q1 earnings

<p>Netflix (NASDAQ: NFLX) revenue for the first quarter of 2020 will drop NFLX inventory after closing on Tuesday. It comes after diluted earnings per share (EPS) of $ 1.57 missed the Wall Street estimate of $ 1.65. On the other hand, the subscription streaming company’s revenue of $ 5.77 billion is better than analysts’ estimates of $ 5.76 billion.

Source: XanderSt /

Here’s a deeper dive into the latest Netflix revenue report.

Earnings after dilution per share are 117.11% higher compared to 76 cents in the same period last year. Revenue for the quarter is 27.65% above the $ 4.52 billion reported in the first quarter of 2019. Operating profit of $ 958.26 million is a jump of 108.73% compared to the previous year from $ 459.08 million. The Netflix revenue report also provides net income of $ 709.07 million. That is an increase of 106.1% from net income of $ 344.05 million over the same period last year.

Netflix’s letter to shareholders says this about how the new corona virus affects NFLX stock earnings:

“There are three primary effects on our economic development since the crisis. First, our membership growth has temporarily accelerated due to containment. Second, our international revenues will be lower than previously estimated due to the sharp rise in the dollar. Third, due to the closure of production, some cash spending on content will be delayed, which will improve our free cash flow, and some title freedoms will be delayed, usually by a quarter. ”

Netflix still provides prospects for the second quarter of 2020 in its earnings report. It expects a diluted earnings per share of $ 1.81 on a turnover of $ 6.05 billion. Wall Street estimates are for diluted earnings of $ 1.54 on revenue of $ 5.97 billion.

NFLX shares fell slightly after Tuesday.

At the time of writing, William White had no position in any of the above securities.

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