Investing.com -- Netflix (NASDAQ:NFLX) is set to report its third-quarter results after the close on Thursday, October 17.
Netflix has a solid history of earnings beats, and for Q3, the consensus EPS estimate is $5.09 a share. Meanwhile, analysts see revenue coming in at $9.77 billion.
So, as the earnings release approaches, Investing.com is asking in a poll:
Looking ahead to the results, analysts at Citi said in a preview note that they see Netflix reporting net additions "modestly ahead of sell side estimates."
However, they also noted that Netflix suggested 3Q24 net adds would fall below the 8.8 million net adds in the third quarter of 2023. "Sell side estimates are forecasting 4.5 million net adds. Our forecast calls for 4.6 million net adds," said Citi.
Citi believes investor focus will likely remain on the firm's ad tier, sports content strategy, and capital allocation.
"During the quarter, NFLX noted its upfront commitments grew 150% y/y in line with expectations," wrote the bank. They also note that with the company's first NFL broadcast set for this Christmas, investors will likely continue to listen for any updates on the company's sports strategy.
Furthermore, the bank says it would not be surprised if the streaming giant announced a U.S. price increase. "Given their estimate of U.S. engagement trends, price hikes by peers, and NFLX's relative value proposition, we see scope for Netflix to increase prices both within and outside the US," they state.
If a price increase were announced, Citi would expect Netflix shares to respond positively, especially if the hike was for the U.S. market. However, they are more cautious about the firm's ability to raise prices materially in all international markets.