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Netflix is expected to report its third-quarter results after the closing bell on Tuesday.
The streaming service no longer offers investors quarterly subscriber updates, but Wall Street will be eager to know how the platform’s recent price hikes and increasing level of advertising fare — especially as companies across industries grapple with consumers tightening their purse strings.
Here’s what Wall Street expects for the company’s most recent quarter:
- Earnings per share: $6.97, according to LSEG
- Income: $11.51 billion, according to LSEG
Netflix reported strong profits for the first and second quarters of the year. The company noted that revenue gains in the first half were driven by higher subscription prices, increased advertising revenue and more member registrations.
“The third quarter saw Netflix make progress on a number of non-core initiatives, including podcasts, physical locations and gaming,” Mike Proulx, vice president and research director at Forrester, said in a statement. “But will Netflix find itself spread too thin as it implements a diversification strategy? Consumers choose Netflix because of the quality of its content. If the company goes too far to focus entirely on entertainment, it risks diluting its core.”
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