Netflix (NASDAQ:NFLX) Announces Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Netflix (NASDAQ:NFLX) issued its quarterly earnings results on Thursday. The Internet television network reported $7.19 EPS for the quarter, beating the consensus estimate of $7.07 by $0.12, Zacks reports. Netflix had a return on equity of 43.00% and a net margin of 24.58%. The firm had revenue of $11.08 billion during the quarter, compared to analysts’ expectations of $11.04 billion. During the same period in the prior year, the firm posted $4.88 earnings per share. The business’s quarterly revenue was up 15.9% compared to the same quarter last year. Netflix updated its FY 2025 guidance to EPS and its Q3 2025 guidance to 6.870-6.870 EPS.

Netflix Price Performance

Shares of NFLX stock traded down $64.93 on Friday, reaching $1,209.24. The company’s stock had a trading volume of 10,678,762 shares, compared to its average volume of 3,787,074. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 0.58. Netflix has a 12-month low of $587.04 and a 12-month high of $1,341.15. The company has a market capitalization of $514.62 billion, a P/E ratio of 51.52, a PEG ratio of 2.30 and a beta of 1.59. The stock’s 50 day simple moving average is $1,232.59 and its 200-day simple moving average is $1,060.77.

Insider Buying and Selling

In other news, CFO Spencer Adam Neumann sold 2,601 shares of Netflix stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $1,307.22, for a total value of $3,400,079.22. Following the transaction, the chief financial officer owned 3,691 shares in the company, valued at approximately $4,824,949.02. The trade was a 41.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Jeffrey William Karbowski sold 620 shares of Netflix stock in a transaction dated Wednesday, June 25th. The stock was sold at an average price of $1,286.84, for a total value of $797,840.80. The disclosure for this sale can be found here. Insiders have sold a total of 186,723 shares of company stock valued at $223,307,201 in the last ninety days. 1.37% of the stock is owned by insiders.

Institutional Trading of Netflix

A hedge fund recently raised its stake in Netflix stock. Revolve Wealth Partners LLC lifted its stake in Netflix, Inc. (NASDAQ:NFLX) by 16.4% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,023 shares of the Internet television network’s stock after purchasing an additional 144 shares during the quarter. Revolve Wealth Partners LLC’s holdings in Netflix were worth $912,000 as of its most recent filing with the Securities & Exchange Commission. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms recently weighed in on NFLX. Loop Capital reissued a “hold” rating on shares of Netflix in a report on Tuesday. Bank of America raised their price objective on Netflix from $1,175.00 to $1,490.00 and gave the stock a “buy” rating in a research note on Friday, May 30th. JPMorgan Chase & Co. raised their price objective on Netflix from $1,230.00 to $1,300.00 and gave the stock a “neutral” rating in a research note on Friday. Piper Sandler raised their price objective on Netflix from $1,400.00 to $1,500.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, Phillip Securities upgraded Netflix from a “moderate sell” rating to a “hold” rating in a research note on Monday, April 21st. Two investment analysts have rated the stock with a sell rating, eleven have given a hold rating, twenty-four have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,275.30.

About Netflix

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.