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Earnings season kicked off last week, with several big banks such as JPMorgan (JPM - Free Report) , Wells Fargo (WFC - Free Report) , and Citigroup (C - Free Report) getting the party started. All three posted better-than-expected results, exceeding both earnings and revenue expectations.
This week, we have a full slate of quarterly reports, including those from market titans Netflix (NFLX - Free Report) and Tesla (TSLA - Free Report) . Below is a chart illustrating the year-to-date performance of both stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, both stocks have outperformed the general market in 2023, indicating favorable momentum. Let’s take a look at how both stack up heading into their quarterly releases.
Netflix
A central focus point of NFLX’s quarterly results is Net Subscriber Additions, telling us if consumers continue to flock to the platform. The company’s earnings release is scheduled for Tuesday, April 18th, after market close.
Net Subscriber Adds came in well above expectations in its latest release; Netflix reported Net Subscriber Adds of roughly 7.7 million, handily beating our consensus estimate of 4.5 million by nearly 70%.
In fact, it represented Netflix’s third consecutive quarter of exceeding Net Subscriber Additions expectations, undoubtedly a major positive.
Surprise (%) - Net Subscriber Additions
Image Source: Zacks Investment Research
The market cheered on the better-than-expected Subscriber Additions, with Netflix shares climbing nearly 9% the following trading session.
Now, for its upcoming release, the Zacks Consensus Estimate for Net Subscriber Additions sits at 3.7 million, reflecting a notable improvement to the year-ago quarter when the company lost roughly 200,000 subscribers.
Regarding the bottom line, the Zacks Consensus EPS Estimate of $2.81 indicates a roughly 20% Y/Y pullback within earnings, with the quarterly earnings estimate remaining unchanged over the last 60 days but up 3% since January of this year.
Image Source: Zacks Investment Research
In addition, Netflix is forecasted to have generated roughly $8.2 billion in revenue throughout the period, implying growth of 4% compared to the year-ago quarter.
Image Source: Zacks Investment Research
Tesla
We’re all highly familiar with Tesla, the undisputed leader in EVs. Like Netflix, investors like to focus on an individual metric of Tesla – the company’s EV deliveries. TSLA’s earnings release is scheduled for April 19th, after market close.
On April 2nd, the company unveiled its production and delivery numbers; Tesla produced roughly 441,000 vehicles throughout the quarter, with total EV deliveries tallying approximately 422,800 and growing 36% Y/Y. As usual, the Model 3/Y represented the bulk (about 97%) of the deliveries, totaling 412,000.
The market didn’t particularly react well to the results, with Tesla shares losing 6% in value the following trading day.
Currently, the Zacks Consensus EPS Estimate of $0.85 indicates a 20% year-over-year pullback within earnings, with the quarterly estimate down 1% over the last 60 days. Price cuts within the company’s EVs have undoubtedly impacted analysts’ views on Tesla’s bottom line.
Image Source: Zacks Investment Research
Tesla posted better-than-expected results in its latest release, exceeding the Zacks Consensus EPS Estimate by roughly 9% and delivering a 2.5% revenue beat. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
With earnings season kicking into higher gear, investors will have plenty of quarterly results to sort through daily.
And soon, we’ll hear from Netflix (NFLX - Free Report) and Tesla (TSLA - Free Report) . Both companies will reveal their results after market close, with Netflix scheduled for Tuesday, April 18th, whereas Tesla is scheduled for Wednesday, April 19th.
Investors will be focused on Netflix’s subscriber additions, a metric that the company has consistently positively surprised on as of late. Regarding Tesla, investors will get a better view of how price cuts have affected margins.
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Q1 Earnings: Tesla, Netflix On Deck
Earnings season kicked off last week, with several big banks such as JPMorgan (JPM - Free Report) , Wells Fargo (WFC - Free Report) , and Citigroup (C - Free Report) getting the party started. All three posted better-than-expected results, exceeding both earnings and revenue expectations.
This week, we have a full slate of quarterly reports, including those from market titans Netflix (NFLX - Free Report) and Tesla (TSLA - Free Report) . Below is a chart illustrating the year-to-date performance of both stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, both stocks have outperformed the general market in 2023, indicating favorable momentum. Let’s take a look at how both stack up heading into their quarterly releases.
Netflix
A central focus point of NFLX’s quarterly results is Net Subscriber Additions, telling us if consumers continue to flock to the platform. The company’s earnings release is scheduled for Tuesday, April 18th, after market close.
Net Subscriber Adds came in well above expectations in its latest release; Netflix reported Net Subscriber Adds of roughly 7.7 million, handily beating our consensus estimate of 4.5 million by nearly 70%.
In fact, it represented Netflix’s third consecutive quarter of exceeding Net Subscriber Additions expectations, undoubtedly a major positive.
Surprise (%) - Net Subscriber Additions
Image Source: Zacks Investment Research
The market cheered on the better-than-expected Subscriber Additions, with Netflix shares climbing nearly 9% the following trading session.
Now, for its upcoming release, the Zacks Consensus Estimate for Net Subscriber Additions sits at 3.7 million, reflecting a notable improvement to the year-ago quarter when the company lost roughly 200,000 subscribers.
Regarding the bottom line, the Zacks Consensus EPS Estimate of $2.81 indicates a roughly 20% Y/Y pullback within earnings, with the quarterly earnings estimate remaining unchanged over the last 60 days but up 3% since January of this year.
Image Source: Zacks Investment Research
In addition, Netflix is forecasted to have generated roughly $8.2 billion in revenue throughout the period, implying growth of 4% compared to the year-ago quarter.
Image Source: Zacks Investment Research
Tesla
We’re all highly familiar with Tesla, the undisputed leader in EVs. Like Netflix, investors like to focus on an individual metric of Tesla – the company’s EV deliveries. TSLA’s earnings release is scheduled for April 19th, after market close.
On April 2nd, the company unveiled its production and delivery numbers; Tesla produced roughly 441,000 vehicles throughout the quarter, with total EV deliveries tallying approximately 422,800 and growing 36% Y/Y. As usual, the Model 3/Y represented the bulk (about 97%) of the deliveries, totaling 412,000.
The market didn’t particularly react well to the results, with Tesla shares losing 6% in value the following trading day.
Currently, the Zacks Consensus EPS Estimate of $0.85 indicates a 20% year-over-year pullback within earnings, with the quarterly estimate down 1% over the last 60 days. Price cuts within the company’s EVs have undoubtedly impacted analysts’ views on Tesla’s bottom line.
Image Source: Zacks Investment Research
Tesla posted better-than-expected results in its latest release, exceeding the Zacks Consensus EPS Estimate by roughly 9% and delivering a 2.5% revenue beat. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
With earnings season kicking into higher gear, investors will have plenty of quarterly results to sort through daily.
And soon, we’ll hear from Netflix (NFLX - Free Report) and Tesla (TSLA - Free Report) . Both companies will reveal their results after market close, with Netflix scheduled for Tuesday, April 18th, whereas Tesla is scheduled for Wednesday, April 19th.
Investors will be focused on Netflix’s subscriber additions, a metric that the company has consistently positively surprised on as of late. Regarding Tesla, investors will get a better view of how price cuts have affected margins.