Wedbush Has Negative Outlook of Netflix FY2025 Earnings

Netflix, Inc. (NASDAQ:NFLX) – Research analysts at Wedbush cut their FY2025 EPS estimates for Netflix in a research note issued on Wednesday, October 22nd. Wedbush analyst A. Reese now anticipates that the Internet television network will post earnings of $25.13 per share for the year, down from their previous forecast of $26.36. Wedbush has a “Outperform” rating and a $1,400.00 price objective on the stock. The consensus estimate for Netflix’s current full-year earnings is $24.58 per share. Wedbush also issued estimates for Netflix’s Q4 2025 earnings at $5.45 EPS, Q1 2026 earnings at $7.86 EPS, Q2 2026 earnings at $8.60 EPS, Q4 2026 earnings at $7.06 EPS, FY2026 earnings at $31.60 EPS, Q1 2027 earnings at $9.31 EPS, Q2 2027 earnings at $10.12 EPS and FY2027 earnings at $37.60 EPS.

Netflix (NASDAQ:NFLX) last posted its earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share for the quarter, missing analysts’ consensus estimates of $6.88 by ($1.01). The company had revenue of $11.51 billion for the quarter, compared to the consensus estimate of $11.52 billion. Netflix had a return on equity of 41.86% and a net margin of 24.05%.The business’s quarterly revenue was up 17.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $5.40 EPS. Netflix has set its FY 2025 guidance at EPS. Q4 2025 guidance at 5.450-5.450 EPS.

A number of other analysts have also recently weighed in on the stock. Wells Fargo & Company decreased their target price on shares of Netflix from $1,560.00 to $1,510.00 and set an “overweight” rating on the stock in a research note on Wednesday. Needham & Company LLC reaffirmed a “buy” rating and set a $1,500.00 target price on shares of Netflix in a research note on Wednesday. Cowen reaffirmed a “buy” rating on shares of Netflix in a research note on Tuesday, October 7th. KeyCorp boosted their target price on shares of Netflix from $1,070.00 to $1,390.00 and gave the stock an “overweight” rating in a research note on Thursday, July 10th. Finally, Pivotal Research reaffirmed a “buy” rating on shares of Netflix in a research note on Thursday, July 10th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $1,352.78.

Netflix Stock Performance

NASDAQ NFLX opened at $1,113.59 on Thursday. The firm’s fifty day moving average price is $1,210.10 and its two-hundred day moving average price is $1,183.73. The stock has a market cap of $473.20 billion, a PE ratio of 46.52, a PEG ratio of 1.89 and a beta of 1.59. Netflix has a fifty-two week low of $746.25 and a fifty-two week high of $1,341.15. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.34 and a current ratio of 1.33.

Insiders Place Their Bets

In related news, insider David A. Hyman sold 424 shares of the business’s stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $1,158.67, for a total value of $491,276.08. Following the transaction, the insider owned 31,610 shares in the company, valued at $36,625,558.70. The trade was a 1.32% 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, CFO Spencer Adam Neumann sold 2,601 shares of the business’s stock in a transaction on Friday, August 1st. The shares were sold at an average price of $1,162.40, for a total transaction of $3,023,402.40. Following the completion of the transaction, the chief financial officer owned 3,691 shares in the company, valued at approximately $4,290,418.40. The trade was a 41.34% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 104,100 shares of company stock valued at $122,710,980 over the last quarter. Company insiders own 1.37% of the company’s stock.

Hedge Funds Weigh In On Netflix

Several institutional investors have recently made changes to their positions in the stock. Optima Capital LLC raised its holdings in shares of Netflix by 3.5% during the second quarter. Optima Capital LLC now owns 239 shares of the Internet television network’s stock valued at $320,000 after purchasing an additional 8 shares during the period. Unified Investment Management raised its holdings in shares of Netflix by 1.7% during the second quarter. Unified Investment Management now owns 474 shares of the Internet television network’s stock valued at $635,000 after purchasing an additional 8 shares during the period. Plancorp LLC raised its holdings in shares of Netflix by 0.6% during the second quarter. Plancorp LLC now owns 1,278 shares of the Internet television network’s stock valued at $1,711,000 after purchasing an additional 8 shares during the period. Five Oceans Advisors raised its holdings in shares of Netflix by 1.1% during the second quarter. Five Oceans Advisors now owns 751 shares of the Internet television network’s stock valued at $1,006,000 after purchasing an additional 8 shares during the period. Finally, Old Port Advisors raised its holdings in shares of Netflix by 1.3% during the second quarter. Old Port Advisors now owns 624 shares of the Internet television network’s stock valued at $836,000 after purchasing an additional 8 shares during the period. Institutional investors and hedge funds own 80.93% of the company’s stock.

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.