Netflix shares rise 13% on strong subscriber growth, considers share buybacks

Technology

(L-R) Reed Hastings and Ted Sarandos attend the “Marseille” Netflix TV Serie World Premiere At Palais Du Pharo In Marseille, on May 4, 2016 in Marseille, France.

Stephane Cardinale | Corbis | Getty Images

Netflix is set to report earnings for the fourth quarter of 2020 after the bell on Tuesday.

Here are the key numbers analysts are looking for:

  • Earnings per share (EPS): $1.39 expected, according to Refinitiv survey of analysts
  • Revenue: $6.626 billion expected, according to Refinitiv
  • Global paid net subscriber additions: 6.47 million expected, according to FactSet

Executives continued to guide subscriber additions below that of previous quarters in its last report, citing the uncertainty created by the pandemic. But they said last quarter growth should return to pre-Covid levels as the world recovers.

Despite production delays prompted by global shutdowns, Netflix still announced a huge slate of programming for 2021. The company will release at least one new movie every week this year.

Netflix has been free-cash-flow positive for three straight quarters but said it expects to be slightly negative in the fourth quarter with production restarting in many regions.

Meanwhile, Netflix has more competition than ever in the streaming video space. Discovery just launched its Discovery+ service in the U.S., and ViacomCBS announced Tuesday its Paramount+ service will launch on March 4. Those should be the last two major streaming video service launches.

This story is developing. Check back for updates.

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