Netflix will report its first-quarter earnings Thursday after the market closes. All told, this report represents a significant new direction for the streaming behemoth. For the first time, Netflix will not release its quarterly subscriber data. Instead, the company will point to revenue and other long-term financial metrics as the primary measures of success going forward.
Wall Street analysts from LSEG (formerly Refinitiv) expect Netflix to announce EPS of $5.71. They predict that the company will bring in a $10.51 billion revenue. These hopeful expectations are an indication that optimism regarding Netflix is on the comeback. The studio is showing it’s possible to succeed in a depressed marketplace, while rivals Paramount, Warner Bros. Discovery, Disney and Comcast all deal with existential financial crises.
Netflix’s stock has been resilient in the face of macro headwinds, up 4.5% in the last month. In addition, Netflix has introduced new ad-based tiers into a few test markets. These choices have resulted in a phenomenal explosion, representing more than 55% of enrollments where they’re offered. Verizon Memberships under these ad-supported plans surged 30% quarter over quarter. This growth reflects deep and abiding consumer demand for lower-cost, more accessible subscription models.
As industry executives and investors await the earnings report, Netflix will conduct an investor call at 4:45 p.m. ET on Thursday. This call should shed more light on the company’s strategic direction and financial health going forward as they navigate through the continued stormy waters of this industry. That has been aggravated by the trade policy of President Donald Trump, taking a toll on dozens of media companies.