Netflix (NASDAQ:NFLX) Posts Earnings Results, Beats Expectations By $0.01 EPS

Netflix (NASDAQ:NFLX) released its quarterly earnings data on Thursday. The Internet television network reported $0.80 EPS for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01, FiscalAI reports. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The business had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion.

Netflix Stock Up 0.9%

Shares of Netflix stock traded up $0.67 on Thursday, hitting $74.35. The company had a trading volume of 67,604,425 shares, compared to its average volume of 44,906,895. The stock has a 50-day moving average of $80.80 and a 200-day moving average of $87.17. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. Netflix has a twelve month low of $70.86 and a twelve month high of $127.75. The firm has a market capitalization of $313.07 billion, a P/E ratio of 24.01, a P/E/G ratio of 0.93 and a beta of 1.52.

Insider Transactions at Netflix

In other news, CFO Spencer Adam Neumann sold 9,253 shares of the company’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.95, for a total transaction of $823,054.35. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at $6,563,353.65. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Bradford L. Smith sold 35,990 shares of the stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director owned 79,690 shares of the company’s stock, valued at approximately $6,177,568.80. The trade was a 31.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 899,839 shares of company stock worth $80,141,661. 1.24% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Imprint Wealth LLC acquired a new position in shares of Netflix during the 3rd quarter worth about $25,000. Wealth Watch Advisors INC acquired a new stake in shares of Netflix in the third quarter valued at about $103,000. Strategic Wealth Investment Group LLC acquired a new stake in shares of Netflix in the second quarter valued at about $121,000. Wiser Advisor Group LLC bought a new stake in Netflix during the third quarter worth about $114,000. Finally, Beaird Harris Wealth Management LLC raised its holdings in Netflix by 9.6% during the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock worth $137,000 after acquiring an additional 10 shares in the last quarter. Institutional investors own 80.93% of the company’s stock.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some analysts remain bullish, arguing Netflix still has long-term upside and can recover if it delivers solid subscriber engagement, ad-tier progress, and better-than-expected results. Netflix set to report earnings as investors focus on engagement trends, strategic priorities
• Positive Sentiment: Options traders are bracing for a large post-earnings move, suggesting the report could be a catalyst for a meaningful rebound if management surprises to the upside. Netflix Last-Minute Q2 Earnings Alert: Options Traders Brace for a Large Post-Report Swing in NFLX Stock
• Neutral Sentiment: Wall Street is split on the earnings setup, with some previews saying the key issue is whether Netflix can answer questions about engagement and growth, while others point to a potentially volatile but not clearly directional reaction. Live: Will Netflix’s Q2 Earnings Tonight Spark a Rebound for the Stock?
• Neutral Sentiment: There is also attention on Netflix’s broader strategy, including possible expansion into live channels, gaming, and acquisition ideas such as Letterboxd, but these are still more about long-term positioning than near-term earnings impact. Netflix’s move to buy Letterboxd sends a key signal to investors
• Negative Sentiment: Bearish coverage highlights slowing consumer demand versus rivals like HBO Max, Paramount+, and Hulu, plus ongoing concerns about viewer engagement and subscriber churn. Ca$htag$: NFLX Losing Steam in Streaming Space as PSKY, WBD & DIS See More Demand
• Negative Sentiment: Several reports note that NFLX has fallen sharply this year and is trading near multiyear lows, reflecting investor skepticism that earnings alone will fix slowing growth and elevated competition. Netflix’s next growth chapter hinges on keeping viewers hooked

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on NFLX shares. Jefferies Financial Group decreased their target price on Netflix from $128.00 to $110.00 and set a “buy” rating for the company in a research report on Wednesday, June 10th. Morgan Stanley reissued an “overweight” rating and set a $90.00 price objective (down from $115.00) on shares of Netflix in a research note on Tuesday. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Netflix in a research note on Wednesday, April 22nd. Phillip Securities increased their target price on shares of Netflix from $100.00 to $110.00 in a report on Monday, April 20th. Finally, Wedbush reissued an “outperform” rating and set a $118.00 price target on shares of Netflix in a research report on Thursday, April 16th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $111.29.

Netflix Company Profile

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.