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Netflix Earnings Miss in Q1 Despite Jump in Subscriptions

Published 04/21/2020, 04:02 PM
Updated 04/21/2020, 04:03 PM
© Reuters.  Netflix Earnings Miss, Revenue Beats In Q1

© Reuters. Netflix Earnings Miss, Revenue Beats In Q1

Investing.com - Netflix reported on Tuesday mixed first-quarter results as earnings missed, but revenue topped expectations as lockdown measures nationwide triggered a wave of new subscriptions.

Netflix (NASDAQ:NFLX) was up about 1% in after-market hours.

Netflix announced earnings per share of $1.57 on revenue of $5.77 billion. Analysts polled by Investing.com anticipated EPS of $1.63 on revenue of $5.74 billion. That compared with an EPS of $0.76 on revenue of $4.52 billion in the same period a year before. Netflix had reported EPS of $1.30 on revenue of $5.47 billion in the previous quarter. Analysts are expecting EPS of $1.53 and revenue of $5.95 billion in the upcoming quarter.

The company reported global streaming paid net additions of 15.7 million in the quarter, well above consensus estimates of about 8.5 million. The company guided second-quarter net additions of 7.5 million. That compared to 8.76 million net adds during the prior quarter and 9.6 million net adds year on year.

"(W)e have seen significant disruption when it comes to customer support and content production. On the customer support side, we’ve now fixed most of our work-from-home challenges. In addition, we’ve taken on another 2,000 agents (all working remotely), so our customer service levels are almost fully restored despite the increased demand," Netflix said in reference to the current Covid-19 pandemic.

Following the report, Investing.com analyst Haris Anwar said that despite its blockbuster earnings, Netflix is likely to meet resistance in the short run amid a lack of guidance.

"Netflix has released a blockbuster quarterly report, well ahead of market expectations. The company’s strong subscriber gains show that it’s the ultimate stay-at-home stock, following the coronavirus pandemic. But there is no guarantee that a global recession and increased competition will not hit Netflix in the later part of the year. There is little clarity from the company about the future and that’s likely to hurt the stock in the short- un," Anwar said.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar

Latest comments

Amazon offers more with Prime you get best movies streaming and free online product delivery all in one place. I have Netflix but haven't watched over 1yr
When even Netflix doesn't reaches all its target at the given time, tell me who will? Oil definitly not ...
Amazon
Amazon has and Amazon will. as an Amazon Prime Customer I enjoy streaming with free grocery delivery. Amazon movies even better more block buster for free
sell time after the first 5min opening candle
What broker do you use?
Amazon to top $2800 my end year and bulls say $4000 2025
so this was pumped hard prior to earnings, and they are pumping it in AH despite an earnings miss. this market is a complete joke. i do not understand why people waste any mental efforts on fundamentals anymore, this is vegas at this point.
yeah, sometimes is irrational... it is earning still a lottery for me
first month is free. lol
Sell it tomorrow peeps
Will wait for the debt crisis.
overhyped stock, way way overvalued
easy 300
it will still make a bearish movement to correct its self.
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