Netflix FY2027 Earnings Forecast Lowered by Erste Group Bank

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

A number of other equities analysts have also issued reports on NFLX. Wedbush lowered their price target on Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a report on Friday, July 17th. Barclays set a $70.00 price objective on Netflix and gave the company an “equal weight” rating in a research note on Wednesday, October 7th. CLSA initiated coverage on Netflix in a research note on Monday, July 20th. They set an “outperform” rating for the company. DZ Bank reaffirmed a “buy” rating on shares of Netflix in a research report on Monday, July 20th. Finally, Moffett Nathanson lowered their target price on Netflix from $115.00 to $100.00 and set a “buy” rating on the stock in a research note on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $94.70.

Netflix Stock Up 0.4%

NFLX stock opened at $70.61 on Tuesday. The company has a fifty day moving average price of $75.40 and a 200 day moving average price of $81.19. Netflix has a 12 month low of $65.08 and a 12 month high of $124.86. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The company has a market cap of $294.02 billion, a price-to-earnings ratio of 22.23, a price-to-earnings-growth ratio of 0.99 and a beta of 1.62.

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

Insider Activity

In related news, Director Richard Barton sold 2,160 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total transaction of $162,216.00. Following the completion of the transaction, the director directly owned 246 shares of the company’s stock, valued at $18,474.60. This represents a 89.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore Sarandos sold 105,850 shares of Netflix stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total value of $7,730,225.50. Following the completion of the sale, the chief executive officer directly owned 206,266 shares in the company, valued at $15,063,605.98. This represents a 33.91% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 179,045 shares of company stock valued at $13,132,194 over the last ninety days. 1.24% of the stock is currently owned by company insiders.

Institutional Trading of Netflix

Several hedge funds have recently modified their holdings of the business. Cornerstone Financial Management LLC acquired a new stake in shares of Netflix during the fourth quarter valued at approximately $26,000. Clal Insurance Enterprises Holdings Ltd purchased a new stake in shares of Netflix in the 2nd quarter valued at approximately $26,000. Compound Global Advisors LLC purchased a new stake in shares of Netflix in the 2nd quarter valued at approximately $29,000. Burnham & Co LLC purchased a new stake in shares of Netflix in the 2nd quarter valued at approximately $29,000. Finally, Merkkuri Wealth Advisors LLC acquired a new position in Netflix in the 1st quarter worth approximately $31,000. 80.93% of the stock is owned by institutional investors and hedge funds.

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.