Core Insights - Netflix reported quarterly earnings of $7.19 per share, exceeding the Zacks Consensus Estimate of $7.07 per share, and up from $4.88 per share a year ago, representing an earnings surprise of +1.70% [1] - The company posted revenues of $11.08 billion for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.06%, and up from $9.56 billion year-over-year [2] - Netflix shares have increased approximately 40.3% year-to-date, significantly outperforming the S&P 500's gain of 6.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $6.56 on revenues of $11.29 billion, and for the current fiscal year, it is $25.45 on revenues of $44.55 billion [7] - The estimate revisions trend for Netflix was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Broadcast Radio and Television industry, to which Netflix belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Group 1: Company Performance - Netflix closed at $1,339.13, with a +1.21% increase, outperforming the S&P 500's gain of 0.52% [1] - Over the past month, Netflix shares gained 9.6%, surpassing the Consumer Discretionary sector's gain of 5.55% and the S&P 500's gain of 4.27% [1] Group 2: Upcoming Earnings - Netflix's earnings report is scheduled for July 17, 2025, with an expected EPS of $7.05, indicating a 44.47% growth year-over-year [2] - The consensus estimate for quarterly revenue is $11.05 billion, reflecting a 15.59% increase from the previous year [2] Group 3: Fiscal Year Projections - For the fiscal year, earnings are projected at $25.32 per share and revenue at $44.47 billion, representing increases of +27.69% and +14.01% respectively from the prior year [3] Group 4: Analyst Forecasts - Recent revisions to analyst forecasts for Netflix are important as they indicate short-term business trends, with upward revisions suggesting positive sentiment towards the company's operations [4] Group 5: Zacks Rank and Valuation - Netflix currently holds a Zacks Rank of 3 (Hold), with a 0% change in the Zacks Consensus EPS estimate over the past month [6] - The Forward P/E ratio for Netflix is 52.25, significantly higher than the industry average of 14.71 [7] - The PEG ratio for Netflix is 2.56, compared to the Broadcast Radio and Television industry's average PEG ratio of 1.2 [8] Group 6: Industry Context - The Broadcast Radio and Television industry, part of the Consumer Discretionary sector, ranks in the top 40% of all industries, with a Zacks Industry Rank of 96 [9]

Group 1: Stock Performance - Netflix (NFLX) closed at $1,253.54, with a daily increase of +1.8%, outperforming the S&P 500's gain of 0.96% [1] - Over the last month, Netflix shares increased by 3.88%, significantly surpassing the Consumer Discretionary sector's gain of 0.13% and the S&P 500's gain of 0.5% [1] Group 2: Upcoming Earnings - The upcoming earnings report for Netflix is scheduled for July 17, 2025, with projected earnings per share (EPS) of $7.05, indicating a 44.47% increase year-over-year [2] - Revenue is expected to reach $11.05 billion, reflecting a 15.59% increase from the same quarter last year [2] Group 3: Full-Year Estimates - Zacks Consensus Estimates for Netflix indicate full-year earnings of $25.32 per share and revenue of $44.47 billion, representing year-over-year changes of +27.69% and +14.01%, respectively [3] - Recent adjustments to analyst estimates suggest positive sentiment regarding Netflix's business and profitability [3] Group 4: Valuation Metrics - Netflix has a Forward P/E ratio of 48.63, which is significantly higher than the industry average of 13.87, indicating that Netflix is trading at a premium [6] - The company holds a PEG ratio of 2.38, compared to the Broadcast Radio and Television industry's average PEG ratio of 1.17 [7] Group 5: Industry Context - The Broadcast Radio and Television industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 154, placing it in the bottom 38% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]