Netflix Forecasts Mixed Outlook as Earnings Approach on April 17

Netflix (NFLX) is set to report its first-quarter 2025 results on April 17.

As it enters this earnings season, Netflix carries strong momentum, having added 19 million paid subscribers in the fourth quarter of 2024. However, the company must navigate typical seasonal headwinds. Its emphasis on international content could be vital for maintaining viewer engagement during this challenging period.

Click here to explore predictions for the company’s overall performance in the first quarter.

Emphasis on International Content

Netflix is expanding its global content offerings, with several high-profile international titles set for release in the first quarter. The platform debuted The Trauma Code: Heroes on Call, its first Korean medical series, alongside the Finnish film Little Siberia and the Spanish thriller The Snow Girl 2: The Soul Game.

Notably, Latin American productions are also gaining traction with Caught, an Argentine thriller adaptation. Asian viewers can look forward to the Chinese romantic comedy I am Married…But! and the fourth season of the popular Korean reality show Single’s Inferno.

This strategy reflects Netflix’s long-term growth plans. According to the Zacks Consensus Estimate, the projection for first-quarter EMEA revenues stands at $3.3 billion, reflecting an 11.8% increase year-over-year. Asia-Pacific revenues are expected to reach $1.22 billion, growing by 20.1%, while Latin American revenues are anticipated at $1.25 billion, marking an 8.1% rise.

Q1 Subscriber and Revenue Estimates for NFLX

Analysts predict a more subdued subscriber growth for the first quarter following last quarter’s strong numbers. The Zacks Consensus Estimate points to approximately 4.36 million net subscriber additions in the first quarter.

This projection is influenced by existing seasonality patterns and the potential fallout from Netflix’s recent price increases, which affected subscription costs across most plans in the U.S., Canada, Portugal, and Argentina earlier this year.

The company expects total revenues to reach $10.416 billion, indicating an 11.2% increase from the previous year. The consensus revenue estimate is slightly higher at $10.54 billion, suggesting a 12.5% year-over-year growth.

For earnings, NFLX anticipates reporting $5.58 per share, while the Zacks Consensus Estimate is currently at $5.74 per share, above the company’s forecast. This consensus has remained stable over the last 30 days.

Netflix, Inc. Price and EPS Surprise

Netflix, Inc. price-eps-surprise | Netflix, Inc. Quote

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Investment Insights

Netflix’s fundamentals remain solid, with a projected 29% operating margin for 2025. However, the company faces challenges from currency fluctuations, increased competition from rivals such as Apple (AAPL), Amazon (AMZN), and Disney (DIS), as well as the potential impact of recent price hikes on customer retention.

Current investors may want to hold their positions as earnings approach, while potential investors might consider waiting for a more favorable entry point after the first-quarter results shed light on 2025 performance trends. NFLX is rated as a Zacks Rank #3 (Hold). To view today’s top Zacks #1 Rank (Strong Buy) stocks, click here.

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This article was originally published by Zacks Investment Research (zacks.com).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.