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Interpreting Netflix (NFLX) International Revenue Trends
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Have you assessed how the international operations of Netflix (NFLX - Free Report) performed in the quarter ended June 2024? For this internet video service, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Our review of NFLX's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter amounted to $9.56 billion, marking an increase of 16.8% from the year-ago quarter. We will next turn our attention to dissecting NFLX's international revenue to get a clearer picture of how significant its operations are outside its main base.
Unveiling Trends in NFLX's International Revenues
During the quarter, Europe, Middle East and Africa contributed $3.01 billion in revenue, making up 31.5% of the total revenue. When compared to the consensus estimate of $3.04 billion, this meant a surprise of -1.13%. Looking back, Europe, Middle East and Africa contributed $2.96 billion, or 31.6%, in the previous quarter, and $2.56 billion, or 31.3%, in the same quarter of the previous year.
Of the total revenue, $1.2 billion came from Latin America during the last fiscal quarter, accounting for 12.6%. This represented a surprise of +1.93% as analysts had expected the region to contribute $1.18 billion to the total revenue. In comparison, the region contributed $1.17 billion, or 12.4%, and $1.08 billion, or 13.2%, to total revenue in the previous and year-ago quarters, respectively.
Asia-Pacific accounted for 11.0% of the company's total revenue during the quarter, translating to $1.05 billion. Revenues from this region represented a surprise of +1.24%, with Wall Street analysts collectively expecting $1.04 billion. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific contributed $1.02 billion (10.9%) and $919.27 million (11.2%) to the total revenue, respectively.
International Market Revenue Projections
Wall Street analysts expect Netflix to report $9.75 billion in total revenue for the current fiscal quarter, indicating an increase of 14.1% from the year-ago quarter. Europe, Middle East and Africa, Latin America and Asia-Pacific are expected to contribute 32% ($3.12 billion), 12.8% ($1.25 billion) and 11% ($1.07 billion) to the total revenue, respectively.
For the full year, the company is projected to achieve a total revenue of $38.67 billion, which signifies a rise of 14.7% from the last year. The share of this revenue from various regions is expected to be: Europe, Middle East and Africa at 31.9% ($12.32 billion), Latin America at 12.5% ($4.85 billion) and Asia-Pacific at 10.9% ($4.23 billion).
Closing Remarks
The dependency of Netflix on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Assessing Netflix's Stock Price Movement in Recent Times
The stock has declined by 7.7% over the past month compared to the 0.4% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Discretionary sector, which includes Netflix, has decreased 0.9% during this time frame. Over the past three months, the company's shares have experienced a gain of 12.9% relative to the S&P 500's 11.3% increase. Throughout this period, the sector overall has witnessed a 3.1% increase.
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Interpreting Netflix (NFLX) International Revenue Trends
Have you assessed how the international operations of Netflix (NFLX - Free Report) performed in the quarter ended June 2024? For this internet video service, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Our review of NFLX's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter amounted to $9.56 billion, marking an increase of 16.8% from the year-ago quarter. We will next turn our attention to dissecting NFLX's international revenue to get a clearer picture of how significant its operations are outside its main base.
Unveiling Trends in NFLX's International Revenues
During the quarter, Europe, Middle East and Africa contributed $3.01 billion in revenue, making up 31.5% of the total revenue. When compared to the consensus estimate of $3.04 billion, this meant a surprise of -1.13%. Looking back, Europe, Middle East and Africa contributed $2.96 billion, or 31.6%, in the previous quarter, and $2.56 billion, or 31.3%, in the same quarter of the previous year.
Of the total revenue, $1.2 billion came from Latin America during the last fiscal quarter, accounting for 12.6%. This represented a surprise of +1.93% as analysts had expected the region to contribute $1.18 billion to the total revenue. In comparison, the region contributed $1.17 billion, or 12.4%, and $1.08 billion, or 13.2%, to total revenue in the previous and year-ago quarters, respectively.
Asia-Pacific accounted for 11.0% of the company's total revenue during the quarter, translating to $1.05 billion. Revenues from this region represented a surprise of +1.24%, with Wall Street analysts collectively expecting $1.04 billion. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific contributed $1.02 billion (10.9%) and $919.27 million (11.2%) to the total revenue, respectively.
International Market Revenue Projections
Wall Street analysts expect Netflix to report $9.75 billion in total revenue for the current fiscal quarter, indicating an increase of 14.1% from the year-ago quarter. Europe, Middle East and Africa, Latin America and Asia-Pacific are expected to contribute 32% ($3.12 billion), 12.8% ($1.25 billion) and 11% ($1.07 billion) to the total revenue, respectively.
For the full year, the company is projected to achieve a total revenue of $38.67 billion, which signifies a rise of 14.7% from the last year. The share of this revenue from various regions is expected to be: Europe, Middle East and Africa at 31.9% ($12.32 billion), Latin America at 12.5% ($4.85 billion) and Asia-Pacific at 10.9% ($4.23 billion).
Closing Remarks
The dependency of Netflix on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
At the moment, Netflix has a Zacks Rank #2 (Buy), signifying that it may outperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Assessing Netflix's Stock Price Movement in Recent Times
The stock has declined by 7.7% over the past month compared to the 0.4% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Discretionary sector, which includes Netflix, has decreased 0.9% during this time frame. Over the past three months, the company's shares have experienced a gain of 12.9% relative to the S&P 500's 11.3% increase. Throughout this period, the sector overall has witnessed a 3.1% increase.