Netflix Q2 2021 earning preview

First FAANG member release the reports!

By: Ahura Chalki

Market analyst – IFC Markets

After the fantastic report of the First Quarter, back on April 19, for the Second Quarter, it is still expected to have a fantastic performance despite the easing lockdowns and almost no stay-home orders. 

Just to review what happened, on April 19, 2021, Netflix reported $3.75 EPS for the First Quarter, beating the consensus estimate of $2.98 by $0.77. Revenue was $7.16 billion, compared to analyst estimates of $7.13 billion, up 24.2% compared to the same quarter last year. 

And now, on Tuesday, July 20, 2021. Netflix will be holding an earnings conference call after market close. ” The report will be for the fiscal quarter ending Jun 2021. According to Zacks Investment Research, based on 22 analysts’ forecasts, the consensus EPS forecast for the quarter is $3.16. The reported EPS for the same quarter last year was $1.5899999999999999.” 

For this report, other estimates are about positive market sentiment to hit 7.3B revenue, up 19.67% (y/y), and EPS are expected to double from the same quarter last year (but slightly below the previous quarter), at $3.18.

For this report, besides EPS and Revenue numbers, we have to check the paid memberships numbers, which in last quarter cause an 11% decrease in after-market trading, when this essential item was almost 2 million subscribers less than earlier guidance. 

Generally, despite the challenges with its competitors, market sentiment and outlook are still favorable for Netflix, and it will help the company for more growth and development. 

The asset moves in a clear uptrend from the technical overview above both main MA lines, while RSI sits at 55 and price moves above the OBV trend line. The main level for assets are:

Pivot point: 53.50

Resistance levels: 540.65 / 551.00 / 558.50

Support levels: 522.72 / 515.50 / 505.00

With a positive report, staying above first resistance will put the R3 and July high above 558 in the spotlight. And then the all-time high at $593.19, seen in January, will be the next target. On the flip side, the disappointing report will bring the 50-DMA at 509 in focus.

Netflix Q2 2021 earning preview


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