Streaming Giants Report Strong Earnings and Growth Prospects

Streaming stocks show promise: Netflix, Disney, and Spotify have reported strong performances with healthy revenue growth and earnings revisions. Investors might find opportunities here as these companies stand out amid competitive challenges.

Date: 16-02-2025

AI Rating: 7

Earnings Per Share (EPS)

Netflix reported earnings per share (EPS) of $4.27, beating the consensus estimate by 1.67% and showing a significant increase of 102.4% from the same quarter last year. Disney posted adjusted EPS of $1.76, exceeding consensus estimates by 22.2% and up 44.3% year over year. Spotify, however, reported adjusted EPS of $1.88, which fell short of expectations by 2.1%, but showed a considerable recovery from a loss of $0.39 per share a year ago.

Revenue Growth

Netflix's revenue for the fourth quarter of 2024 reached $10.24 billion, growing by 16% year over year and beating the expectations by 1.29%. Disney's revenue rose to $24.69 billion, reflecting a year-over-year growth of 4.8% and slightly surpassing estimates. Spotify's revenues amounted to $4.53 billion, exceeding the consensus estimates by 3.81%, indicating a positive trajectory in growth.

Positive Outlook

Both Netflix and Disney provided strong guidance for future earnings and revenue growth. Netflix anticipates first-quarter 2025 revenue of $10.416 billion (up 11.2% year over year) and expects an EPS of $5.58. Disney projects high single-digit EPS growth for fiscal 2025 compared to fiscal 2024 and anticipates over $15 billion in cash from operations.

Summary of Ratings:

Netflix EPS rating: 8
Disney EPS rating: 8
Spotify EPS rating: 5
Netflix Revenue rating: 8
Disney Revenue rating: 6
Spotify Revenue rating: 7

Stocks: NFLX DIS SPOT