Netflix Pre-earnings: What to Expect From the Streaming Giant in Q2 2022?
Shares of streaming leader Netflix have declined by more than 70% in 2022, making its upcoming Q2 earnings extremely crucial to investors.
July 13, 2022

Technology heavyweight Netflix (NASDAQ: NFLX) is among the worst-performing stocks in 2022. Shares of Netflix are down 75% from all-time highs, valuing the company at a market cap of $77.5 billion.

Netflix stock is currently priced at $174.50, and the company has wiped out most of its gains since 2017. In the last five years, Netflix has returned a paltry 8.3% to investors in cumulative gains, grossly underperforming the broader markets. 

When is Netflix's earnings date?

Netflix is scheduled to report its earnings for Q2 of 2022 on Tuesday, July 19th at 6:00 pm Eastern Time.

How can I listen to Netflix's earnings call?

To listen to the call and access the earnings transcript, as well as the shareholder's letter and the company's financial statements for the quarter, all you need to do is go to Netflix's investor relations page.

The upcoming earnings report and Netflix's guidance will be a crucial driver of its share price this week. Let's see what Wall Street expects from Netflix in Q2 of 2022.

What to expect from Netflix's Q2 earnings?

Netflix is the largest streaming platform in the world. The cord-cutting phenomenon is expected to be a key driver of growth for Netflix. Cord-cutting is the practice of ending a cable TV subscription in favor of connected TV options. 

Netflix enjoyed a first-mover advantage, allowing the company to increase revenue from $15.79 billion in 2018 to $29.8 billion in 2021. However, the ongoing pandemic also acted as a massive tailwind for Netflix as entertainment options were limited, and people were glued to their TV sets. 

But the reopening of economies, a rise in competition, and Netflix's exit from Russia are expected to decelerate the company's top-line growth in 2022. 

In Q2 of 2022, Netflix is forecast to report revenue of $8.05 billion and adjusted earnings per share of $2.96. In the year-ago period, its revenue stood at $7.34 billion, while adjusted earnings were $2.97 per share. So, Netflix's sales are expected to rise by 9.6%, while adjusted earnings might decline by a marginal 0.3% in Q2. 

In addition to revenue and earnings, investors and analysts will closely watch the company's subscriber growth. Netflix ended Q1 with 221.6 million subscribers, 7% higher than the year-ago period but 200,000 lower than Q4 of 2021. 

Netflix's management had also forecast subscriber growth to decline by two million in the June quarter, driving its shares lower after its Q1 results.

What next for Netflix stock and investors?

Despite a lower subscriber base, Netflix remains a top bet given its depressed valuation. It still has the potential to gain traction in several international markets across Asia and Latin America. The company's focus on creating original content should continue attracting future subscribers.

Additionally, during its Q1 earnings call, Netflix hinted it might explore an ad-supported business model, unlocking another revenue stream in the process. 

Netflix is valued at 2.4 times forward sales and a price to earnings multiple of 16x, which is quite reasonable. Analysts expect Netflix stock to gain almost 70% in the next 12 months, given its average price target of $294. 

Top Ten Stocks To Buy Now
Commit to your future wealth today and join 1000s of subscribers receiving:
  • New stock picked every week out of 60,000 worldwide
  • Ten Foundational stocks to hold until 2034
  • A library of 60 stocks with analysis
  • 10 year Track record of performance
By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Policy and Terms of Use.

The Home of Successful Investing.

© 2024 MyWallSt Ltd. All rights reserved.







This website is operated by MyWallSt Ltd (“MyWallSt”). MyWallSt is a publisher and a technology platform, not a registered broker-dealer or registered investment adviser, and does not provide investment advice. All information provided by MyWallSt Limited is of a general nature for information and education purposes, and you should not construe any such information as investment advice. MyWallSt Limited does not take your specific needs, investment objectives or financial situation into consideration, and any investments mentioned may not be suitable for you. You should always carry out your own independent verification of facts and data before making any investment decisions, as we cannot guarantee the accuracy or completeness of any information we publish and any opinions that we publish may be wrong and may change at any time without notice. If you are unsure of any investment decision you should seek a professional financial advisor. MyWallSt Limited is not a registered investment adviser and we do not provide regulated investment advice or recommendations. MyWallSt Limited is not regulated by the Central Bank of Ireland. MyWallSt Limited may provide hyperlinks to web sites operated by third parties. Your use of third party web sites and content, including without limitation, your use of any information, data, advertising, products, or other materials on or available through such web sites, is at your own risk and is subject to the third parties' terms of use.