Netflix Q1 2023 Earnings Anticipation: Analysts Foresee Subscriber Surge Post-Password Sharing Crackdown

Dennis Dick, a CFA charterholder, professional trader and equity analyst, is bullish on Netflix Inc's (NASDAQ: NFLX) Q1 earnings, anticipating subscriptions to jump after the company announced a halt in password sharing, he said during Benzinga's Premarket Prep show on Tuesday.

“Fifteen dollars a month is still a cheap entertainment subscription,” according to the analyst, who also thought that Netflix's comeback is going to negatively affect The Walt Disney Company (NYSE: DIS). 

Dick stated that he is neutral on the market, but positive on underperforming stocks in 2023. "I’m not chasing Microsoft Corp. (NASDAQ: MSFT), Amazon, Inc. (NASDAQ: AMZN), Apple, Inc. (NASDAQ: AAPL), Nvidia Corp. (NASDAQ: NVDA) or Tesla, Inc. (NASDAQ: TSLA). There are a lot of stocks not that far from the lows," he said.

Also Read: Bullish Bets On Netflix: Options Traders Anticipate A Significant Stock Surge By Week's End

Bank of America Is Also Bullish On Netflix

Bank of America also shared bullish views on Netflix's Q1 earnings. Third-party evidence suggests U.S. and Canadian subscriber figures will be at least 100,000 more than expected, research analyst Jessica Reif Ehrlich said in a note. 

BofA sees the crackdown on password sharing as an enormous long-term opportunity, with a sizable upside realized this year and the next. The bank holds a Buy rating on Netflix shares, with a price target of $410 per share, 39% higher than current levels. 

Goldman Sachs Remains Bearish On Netflix

Eric Sheridan and Brett Feldman, equity analysts at Goldman Sachs, believe Netflix will report in-line (or slightly better) subscriber growth in Q1. 
Goldman believes Netflix management will frame the password crackdown as a longer-term strategy in 2023, with a stronger focus on specific regions.  
Looking ahead to the rest of 2023, Goldman Sachs expressed worries about the impact of a consumer recession, as well as increased competition on Netflix demand trends. 
Goldman Sachs has a Sell rating on NFLX shares, with a price target of $230, or a 30% downside from current levels.

What Consensus Analysts Expect 

Netflix will report Q1 results after the closing bell on Tuesday, April 18.

Analysts anticipate quarterly earnings per share of $2.86 and sales of $8.18 billion. In Q4 2022, Netflix fell short of profit expectations by 78% ($0.12 reported vs $0.55 expected). 

Shares of Netflix are trading 52% below the all-time highs set in November 2021. 

Read next: Netflix, Disney Face New Threat In India As Country's Richest Person Plots Gigantic Streaming Expansion

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