Netflix (NFLX) Q4 2020 earnings

(L-R) Reed Hastings and Ted Sarandos benefit the “Marseille” Netflix TV Serie World Premiere At Palais Du Pharo In Marseille, on Would possibly possibly well also neutral 4, 2016 in Marseille, France.

Stephane Cardinale | Corbis | Getty Pictures

Netflix reported earnings for the fourth quarter of 2020 after the bell on Tuesday, asserting it is a ways “very shut” to being free cash float determined and is inquisitive about stock buybacks. This 365 days, it expects to be spherical damage even on cash float. 

The stock became up about 11% after hours.

Here are the important thing numbers:

  • Earnings per portion (EPS): $1.19 vs $1.39 expected, in preserving with Refinitiv gape of analysts
  • Income: $6.64 billion vs $6.626 billion expected, in preserving with Refinitiv
  • Global paid win subscriber additions: 8.5 million vs 6.47 million expected, in preserving with StreetAccount

Netflix handily beat estimates for global paid win subscriber additions, reporting 8.5 million versus the 6.47 million analysts anticipated, in preserving with StreetAccount. Netflix additionally beat estimates for earnings but fell instant on earnings per portion.

Netflix’s expectation of soon turning into free cash float determined would carry to existence the bull case for the stock. Netflix said it would no longer want exterior financing and would even explore returning cash to shareholders. 

Netflix hasn’t made this form of switch since 2011, a pivotal 365 days in the corporate’s shift from DVDs to streaming. 

The company said it intends to pay down more of its debt as smartly. It be raised $15 billion in debt since 2011 and in the indicate time has $8.2 billion cash accessible. 

Netflix has been free cash float determined for the past three quarters, although executives largely credited that as an discontinuance of postponed manufacturing at some level of the pandemic. Free cash float for Q4 became unfavorable as predicted due to manufacturing restarts in some regions, but no longer as necessary as expected. Free cash float for fat 365 days 2020 became +$1.9 billion versus -$3.3 billion in 2019.

-CNBC’s Alex Sherman contributed to this myth. 

This memoir is creating. Test abet for updates.

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