Netflix (Nasdaq: NFLX) reported earnings for the fourth quarter of 2020 after trading on Tuesday (19), announcing that it expects positive free cash flow after 2021. Cash flow.
Key Numbers Here:
- Earnings per share (EPS): According to the analysts’ Refinitive Survey, the expected 39 is 19 1.19 against the 1.39
- Recipe: 64 is expected against 6.64 billion 62 6.626 billion, according to the Refinitive
- Global net combinations of paid subscribers: 8.5 million and 6.47 million, according to Street Account
Managers added subscribers below previous quarters in their latest report, citing uncertainty created by the epidemic. But they said last quarter’s growth should return to the pre-Kovit-19 level as the world recovers and leaves home.
Despite production delays due to global downtime, Netflix has yet to announce a major programming opportunity for 2021. The company will release at least one new film every week this year.
With 62 million hits in the first 28 days, the company shared details of its biggest hits in the quarter, such as “The Queen’s Compete”. In addition to becoming “the biggest limited series in Netflix history”, Netflix revealed its cultural impact, creating chessboard sales.
Netflix claims that “The Midnight Sky”, directed by George Clooney, was the biggest original film of the quarter, with 72 million views in the first four weeks.
The company also plans to repay the loan. It has accumulated $ 15 billion in debt since 2011 and currently holds $ 2.82 billion.
Free cash flow in the fourth quarter was negative, with the company predicting a resumption of production in some regions, but not as significant as expected. Free cash flow throughout 2020 + 9 1.9 billion and in 2019 -US $ 3.3 billion.
Meanwhile, Netflix has more competition than ever before in the video streaming space. In addition to Apple TV +, Disney +, HBO Max and Peacock, Discovery has launched its Discovery + service in the US, and Viacom CBS announced on Tuesday that it will launch its Paramount + service on March 4th. These should be the last two releases of the streaming video service.
In a letter to shareholders, executives said it was “the proof” of the company’s approach to improving the platform to face competition for the satisfaction of 2020 subscribers.
Netflix also said it was considering repurchasing shares, a practice that has not been done since 2011.
Shares rose 11.3% shortly after the quarterly balance sheet was released.
Candle Chart (Intraday) NFLX – 1 minute from br.advfn.com
The Netflix expectation that free cash will soon turn positive will give life to the positive argument for stocks. He said Netflix would no longer need to raise external funding for day-to-day operations and would explore cash returns for shareholders.
The P3 is also traded through the Netflix PDR (POV: NFLX34).
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