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LOS ANGELES — Netflix is expected to report its fourth-quarter results after the closing bell on Tuesday.
Wall Street will be paying close attention to the details surrounding the company’s ad-supported business model, its recent collection of live sporting events and the continued impact of password crackdowns on subscriber numbers.
After all, this will likely be the last time Netflix reports its subscriber data to shareholders, as it plans to focus on revenue and other financial metrics as performance indicators.
Here’s what Wall Street expects for the company’s most recent quarter:
- Earnings per share: $4.20, according to LSEG
- Income: $10.11 billion, according to LSEG
- Paid subscriptions: 290.9 million, according to StreetAccount
“Netflix has taken a virtually insurmountable lead in the streaming wars,” Wedbush analyst Alicia Reese wrote in a recent research note. “Netflix can maintain its advantage while its competitors try to replicate its business model. Even though Netflix has moved past its crackdown on password sharing, we expect its level of advertising to generate revenue growth for several years. Until ‘Now the introduction of the ad tier has limited churn, reducing pressure on adding new subscribers, with at least 30 million accounts converting to the ad tier in the last six months.
Reese noted that Netflix is able to accelerate revenue from its ad tier as it continues to add more live events, improves its ad targeting and establishes new partnerships. She said she expects Netflix’s advertising level to be its biggest growth driver through 2026.
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