Time to Buy Netflix Stock as Q4 Earnings Approach?

Netflix Q4 Earnings Preview - Netflix's Q4 sales are expected to increase 14% to $10.12 billion compared to$8.83 billion in the same quarter last year [2] - Q4 EPS is projected to climb 98% to $4.19 versus$2.11 per share a year ago [2] - For fiscal 2024, Netflix is expected to report a 15% increase in total sales to $38.86 billion and a 64$19.77 per share [2] Earnings Performance History - Netflix has exceeded sales estimates for five consecutive quarters [3] - The company has surpassed earnings expectations in three of its last four quarterly reports with an average EPS surprise of 5.73% [3] - Recent quarterly surprises include 6.09% in Q3 2024, 3.83% in Q2 2024, and 17.07% in Q1 2024 [4] Subscriber Growth - Netflix is expected to add over 7 million subscribers in Q4, reaching a total of 287.48 million subscriptions [5] - This represents a 10% increase from the 260.28 million subscribers at the end of Q3 2024 [5] Valuation Metrics - Netflix currently trades at a 35.6X forward earnings multiple, which is a premium to the S&P 500's 22.2X and Disney's 19X [6] - The stock trades well below its five-year high of 88.5X forward earnings and at a slight discount to the median of 37.4X during this period [6] Market Position - Netflix maintains its position as the streaming leader ahead of Disney [5] - The company's stock has outperformed both the broader market and Disney shares in recent years [6]