Netflix FY2027 Earnings Forecast Reduced by Erste Group Bank

Netflix, Inc. (NASDAQ:NFLX) – Erste Group Bank reduced their FY2027 earnings per share estimates for Netflix in a research note issued on Thursday, October 8th. Erste Group Bank analyst H. Engel now expects that the Internet television network will post earnings of $3.79 per share for the year, down from their prior estimate of $3.82. The consensus estimate for Netflix’s current full-year earnings is $3.59 per share.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.01. The firm had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The business’s revenue for the quarter was up 13.4% on a year-over-year basis. During the same period in the prior year, the business earned $0.72 EPS.

NFLX has been the topic of a number of other research reports. Oppenheimer set a $85.00 target price on Netflix and gave the company an “outperform” rating in a report on Friday, July 17th. President Capital reduced their price target on shares of Netflix from $134.00 to $83.00 and set a “buy” rating for the company in a research report on Monday, July 20th. Guggenheim restated a “buy” rating and set a $80.00 price target (up from $75.00) on shares of Netflix in a report on Thursday, October 1st. HSBC downgraded shares of Netflix from a “buy” rating to a “hold” rating and lowered their price objective for the company from $96.00 to $76.00 in a research report on Tuesday, September 22nd. Finally, Piper Sandler reaffirmed an “overweight” rating and set a $85.00 price objective (down from $115.00) on shares of Netflix in a research report on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and an average target price of $94.70.

Netflix Trading Up 0.4%

Shares of NASDAQ NFLX opened at $70.61 on Tuesday. Netflix has a one year low of $65.08 and a one year high of $124.86. The firm has a market capitalization of $294.02 billion, a PE ratio of 22.23, a PEG ratio of 0.99 and a beta of 1.62. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The business has a 50-day moving average price of $75.40 and a two-hundred day moving average price of $81.19.

Insider Transactions at Netflix

In other Netflix news, insider David A. Hyman sold 5,723 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the transaction, the insider directly owned 316,100 shares of the company’s stock, valued at $23,027,885. This represents a 1.78% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Neumann sold 9,248 shares of the firm’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at $5,592,316.73. This trade represents a 11.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 179,045 shares of company stock valued at $13,132,194. Corporate insiders own 1.24% of the company’s stock.

Hedge Funds Weigh In On Netflix

A number of hedge funds have recently added to or reduced their stakes in the company. Cornerstone Financial Management LLC acquired a new position in Netflix during the fourth quarter worth $26,000. Clal Insurance Enterprises Holdings Ltd bought a new position in Netflix during the second quarter valued at about $26,000. Compound Global Advisors LLC acquired a new stake in shares of Netflix in the second quarter worth about $29,000. Burnham & Co LLC acquired a new stake in shares of Netflix in the second quarter worth about $29,000. Finally, Merkkuri Wealth Advisors LLC acquired a new stake in shares of Netflix in the first quarter worth about $31,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s valuation has become more attractive after a roughly 40% decline over the past year. The shares trade at about 21.6–22 times earnings, well below the company’s historical average, while revenue continues to grow. Some investors view a strong earnings report or improved outlook as a potential catalyst. What Could Netflix Stock Be Worth In Three Years?
• Positive Sentiment: International markets continue to grow faster than Netflix’s U.S. and Canada segment, and one analyst expects the stock could rebound sharply after the October 20 earnings release. Netflix is also viewed favorably relative to the newly combined Skydance media competitor. Prediction: Netflix Stock Is Going to Soar After Oct. 20
• Neutral Sentiment: Investors are focused on whether Netflix can meet guidance for approximately 12% third-quarter revenue growth, with advertising performance, subscriber trends and management’s outlook likely to determine the next major move. Netflix’s Q3 Guidance Calls for About 12% Revenue Growth
• Neutral Sentiment: The appointment of Craig Ferguson to lead content acquisition could strengthen licensing and distribution decisions, but its financial impact is not yet clear. What Is Netflix Signaling With Its New Content Acquisition Chief?
• Negative Sentiment: Growth is slowing in Netflix’s largest region: U.S. and Canada generated about 43% of second-quarter revenue but grew only 10%, down from 18% two quarters earlier. Currency-neutral growth has also decelerated across international regions, challenging the argument that overseas expansion alone makes the stock a bargain. Netflix’s Regions Abroad Are Growing Faster Than Its Home Market
• Negative Sentiment: Reports that Netflix may cut about 5% of its workforce signal efforts to control costs as growth slows and investor enthusiasm cools. Analysts have also cited competitive pressure and concerns about content quality. Netflix Plans 5% Workforce Reduction
• Negative Sentiment: Potential November tax-loss selling could create additional near-term volatility or selling pressure even if the earnings report is solid. Hold Netflix Through Earnings, But Be Aware Of Upcoming November Tax Loss Selling Season

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.