Netflix is expected to release its third-quarter numbers after the market closes on Tuesday. The streaming entertainment behemoth is expected to report $7.48 billion in sales and 3.5 million net subscriber additions in the September quarter, according to Wall Street analyst jobs. This would show a 16.22% revenue growth from the same period in 3Q’20. EPS is expected to come in at $2.56, an increase of 61% from $1.59 per share a year earlier. Earnings whispers meanwhile, anticipates EPS coming in at $2.70 per share.
For the current quarter, analysts expect sales of $7.67 billion and earnings per share of $1.10. Subscriber patterns are another crucial metric to keep an eye on. In the first half of 2021, Netflix jobs had 6 million paying net customers. In comparison, in the same time period in 2019 and 2020, 12 million and 25 million additional subscribers were added, respectively. The consensus forecast for the quarter ending in December is 8.5 million net subscriber additions.
Several brokerages jobs boosted their Netflix price targets this week. Morgan Stanley (NYSE:MS) set a $650 low objective and an $850 high target. The investment bank assigned an "Overweight" recommendation to the stock, which now has a forward P/E of around 49. Netflix was also raised to $705 from $600 at Piper Sandler. In a note to investors, the firm said that Netflix may be developing “a production cost advantage relative to peers via overseas content like Squid Game”.
Credit Suisse raised its target price for NFLX to $740 from $643, while Jefferies raised it to $737 from $620. Netflix's stock has risen 16 percent year to date and over 20 percent since the company's second-quarter results were released in July. It has a market capitalization of $280 billion. On Friday, the stock dropped 0.87 percent to $628.29.
