Wedbush Issues Negative Outlook for Netflix Earnings

Netflix, Inc. (NASDAQ:NFLX) – Wedbush lowered their Q1 2025 earnings estimates for Netflix in a note issued to investors on Wednesday, January 22nd. Wedbush analyst A. Reese now forecasts that the Internet television network will earn $5.75 per share for the quarter, down from their prior estimate of $5.88. Wedbush currently has a “Outperform” rating and a $1,150.00 target price on the stock. The consensus estimate for Netflix’s current full-year earnings is $23.43 per share. Wedbush also issued estimates for Netflix’s Q2 2025 earnings at $6.17 EPS, Q3 2025 earnings at $6.80 EPS, Q4 2025 earnings at $5.60 EPS, FY2025 earnings at $24.32 EPS, Q1 2026 earnings at $7.10 EPS, Q2 2026 earnings at $7.29 EPS, Q3 2026 earnings at $7.97 EPS, Q4 2026 earnings at $6.69 EPS, FY2026 earnings at $29.05 EPS and FY2027 earnings at $34.09 EPS.

A number of other research firms also recently issued reports on NFLX. Sanford C. Bernstein increased their price target on Netflix from $625.00 to $780.00 and gave the stock a “market perform” rating in a research report on Friday, October 18th. Pivotal Research increased their target price on shares of Netflix from $1,100.00 to $1,250.00 and gave the stock a “buy” rating in a report on Wednesday. Needham & Company LLC boosted their price target on shares of Netflix from $800.00 to $1,150.00 and gave the company a “buy” rating in a report on Wednesday. Jefferies Financial Group increased their price objective on shares of Netflix from $780.00 to $800.00 and gave the company a “buy” rating in a research note on Friday, October 18th. Finally, Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Netflix from $650.00 to $875.00 and gave the stock a “hold” rating in a research note on Wednesday. Ten investment analysts have rated the stock with a hold rating, twenty-five have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $996.94.

Netflix Trading Up 3.2 %

NFLX opened at $984.86 on Thursday. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 0.62. The stock’s fifty day moving average is $889.11 and its two-hundred day moving average is $763.41. The company has a market capitalization of $420.99 billion, a P/E ratio of 49.67, a PEG ratio of 1.41 and a beta of 1.27. Netflix has a 52 week low of $537.07 and a 52 week high of $999.00.

Netflix (NASDAQ:NFLX) last issued its earnings results on Tuesday, January 21st. The Internet television network reported $4.27 EPS for the quarter, topping analysts’ consensus estimates of $4.20 by $0.07. Netflix had a net margin of 22.34% and a return on equity of 39.48%. The business had revenue of $10.25 billion for the quarter, compared to the consensus estimate of $10,141,900 billion. During the same period in the prior year, the firm earned $2.11 EPS. The company’s revenue for the quarter was up 16.0% compared to the same quarter last year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in NFLX. Custom Index Systems LLC increased its stake in shares of Netflix by 3.7% during the fourth quarter. Custom Index Systems LLC now owns 1,569 shares of the Internet television network’s stock worth $1,398,000 after purchasing an additional 56 shares in the last quarter. Heck Capital Advisors LLC acquired a new stake in Netflix in the 4th quarter worth about $446,000. Austin Private Wealth LLC increased its stake in Netflix by 16.8% during the 4th quarter. Austin Private Wealth LLC now owns 834 shares of the Internet television network’s stock worth $743,000 after buying an additional 120 shares in the last quarter. Caprock Group LLC lifted its position in shares of Netflix by 3.9% in the fourth quarter. Caprock Group LLC now owns 17,745 shares of the Internet television network’s stock valued at $15,817,000 after acquiring an additional 661 shares in the last quarter. Finally, New Wave Wealth Advisors LLC lifted its position in shares of Netflix by 5.7% in the fourth quarter. New Wave Wealth Advisors LLC now owns 1,754 shares of the Internet television network’s stock valued at $1,563,000 after acquiring an additional 95 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Insider Activity at Netflix

In related news, Chairman Reed Hastings sold 41,601 shares of the business’s stock in a transaction on Friday, November 1st. The shares were sold at an average price of $758.06, for a total transaction of $31,536,054.06. Following the completion of the transaction, the chairman now directly owns 85 shares in the company, valued at $64,435.10. The trade was a 99.80 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Anne M. Sweeney sold 589 shares of the business’s stock in a transaction dated Wednesday, November 20th. The shares were sold at an average price of $880.00, for a total value of $518,320.00. The disclosure for this sale can be found here. Insiders have sold a total of 146,500 shares of company stock worth $123,309,210 over the last quarter. Insiders own 1.76% of the company’s stock.

Netflix Company Profile

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.