Netflix’s (NFLX) Q3 results will be “largely” in-line with expectations, including similar subscriber net additions of 6 million for the quarter, compared with 5.9 million in Q2 and 2.4 million in the year-ago period, UBS Securities said Monday in a note.
UBS said it estimates an 8.2% revenue growth in Q3 for Netflix, while the company projects 7.5%.
The firm said it also expects Netflix to provide “solid” commentary for Q4, including seasonally stronger subscriber additions, further acceleration in revenue growth and stronger year-over-year margins.
But UBS said it is lowering its 2024 estimates due to a more gradual build in advertising and more measured margin expansion because of higher content amortization and other investments.
UBS cut its diluted EPS estimate for Netflix to $15.10 from $16.17 and revenue estimate to $38.24 billion from $38.64 billion for 2024.
UBS maintained the company’s buy rating and reduced the price target to $500 from $525.
Netflix is set to release Q3 results on Wednesday.