Shares of streaming giant Netflix (NASDAQ:NFLX) fell in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2024. Earnings per share came in at $5.28, which beat analysts’ consensus estimate of $4.51 per share. Sales increased by 14.8% year-over-year, with revenue hitting $9.37 billion. This beat analysts’ expectations of $9.28 billion. In addition, global streaming paid memberships increased to 269.6 million users, which equates to a 9.33 million user jump in the first quarter. Meanwhile, analysts had forecast 4.84 million users.
Looking forward, management now expects revenue and adjusted earnings per share for Q2 2024 to be $9.49 billion and $4.68, respectively. For reference, analysts were expecting $9.527 billion in revenue, along with an adjusted EPS of $4.55.
Is NFLX a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 27 Buys, 12 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 90% rally in its share price over the past year, the average NFLX price target of $637.29 per share implies 3.44% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
