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yesterday

Analysts Expect Netflix Q2 Revenue to Surge on Price Hikes and Ad-Tier Momentum

A recent survey indicates that more than half of Netflix subscribers would accept further price increases.

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Overview

  • Analysts forecast Netflix to report Q2 revenue of $11.07 billion, up 16% year-over-year, and net income of $3.08 billion, a 45% increase.
  • Subscription price hikes implemented in January have elevated monthly plan costs across ad-supported, standard ad-free and premium tiers.
  • Consensus share targets among analysts average $1,330, with individual forecasts ranging from $1,250 at Citi to $1,490 at Bank of America, and 13 buy ratings versus four holds.
  • Investors will zero in on commentary regarding the rollout of Netflix’s in-house ad-tech platform and its impact on ad-supported subscription growth.
  • A TD Cowen survey reveals that 54% of Netflix members would pay at least $1 more per month, suggesting robust pricing power but with 46% ready to cancel if prices rise.