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Netflix is due to report third-quarter earnings after the closing bell Tuesday.
The streaming service is no longer offering investors quarterly subscriber updates, but Wall Street will be keen to hear how recent price hikes and the platform’s growing advertising tier are faring — especially as businesses across all sectors grapple with consumers tightening their purse strings.
Here’s what Wall Street expects for the company’s most recent quarter:
- Earnings per share: $6.97, according to LSEG
- Revenue: $11.51 billion, according to LSEG
Netflix posted major earnings beats for the first and second quarter of the year. The company noted that revenue gains in the first half of the year were due to higher subscription prices, an increase in ad revenue and more member sign-ups.
“Q3 saw Netflix making progress on a number of non-core initiatives including podcasts, physical locations, and games,” Mike Proulx, vice president and research director at Forrester, said in a statement. “But will Netflix find itself spread too thin as it advances a diversification strategy? Consumers choose Netflix because of its quality content. If the company goes too broad to become all things entertainment, it risks diluting its core.”
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