American streaming giant Netflix is expected to announce further growth in its first quarter earnings after trading closes on Wall Street tomorrow. The video streaming service is projected to report $0.63 (44p) per share on $3.69bn in revenue, up from $3.3bn in the fourth quarter of last year.
Netflixs strong first quarter performance would follow what the company called “a beautiful Q4, completing a great year as internet TV expands globally.” The company reported revenue growth of 32 per cent in the fourth quarter, which could increase as much as 39 per cent in the first three months of this year.
Netflix stock hit a record high of $331.98 in March, and closed at $311 on Friday. The companys earnings announcement is likely to have a big impact on its share price, and if the streaming service reports revenues as high as expected, its value could skyrocket.
“Netflix enters a new fiscal year after a period of robust growth in its revenues, profits, content spending, subscribers and stock price,” said Paul Verna, principal analyst at eMarketer. “Whether the company can sustain this momentum in 2018 remains to be seen, but many indicators point to its continued leadership in the subscription video space. For the foreseeable future, Netflix will continue to focus on areas that have driven its success in recent years: international expansion and original content.”
eMarketers analysis suggests that in the US, the streaming service could have up to 132.6m individual users this year, a jump of 3.6 per cent from 2017. This would make Netflix the second most important video streaming service after Youtube, and would give the company two-thirds of the American online streaming market.