Earnings

Netflix third-quarter subscribers barely beat estimates as ad-tier members jump 35%

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  • NFLX
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LOS ANGELES — Netflix is due to report third-quarter earnings after the closing bell Thursday.

Wall Street will be paying close attention to details surrounding the company’s advertising-supported business model, upcoming live sporting events and the continued effects of its password crackdown on subscriber numbers.

After all, this is one of the last times Netflix will report subscriber data to shareholders, as it plans to focus on revenue and other financial metrics as performance indicators.

Here is what Wall Street expects for the company’s most-recent quarter: 

  • Earnings per share: $5.12, according to LSEG
  • Revenue: $9.76 billion, according to LSEG
  • Paid memberships: 282.15 million, according to StreetAccount

Active subscriber numbers are expected to be flat for the third quarter, as gains from its crackdown on password sharing start to taper off. This has led some Wall Street analysts to predict that Netflix will soon announce price hikes.

New Street Research analyst Dan Salmon and Morgan Stanley analyst Benjamin Swinburne both noted expected price increase announcements in recent research notes to investors.

As of Wednesday’s close, the company’s stock was up 44% year to date and around 95% over the past 12 months.

This is a breaking news story. Please check back for updates.

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