$Netflix(NFLX.US) -5% AH after beating on 4Q results but guiding to lighter than expected 1Q Revs, operating income, and EPS. FY’26 rev and OI guidance in line with expectations, excl acquisition costs. We expect the conf call to be mostly about the WBD deal.
This morning NFLX officially modified its offer to an all cash deal of $27.75/share (was $23.25 cash/ $4.50 stock) for the WBD streaming business, with the global networks business to be spun out as a separate entity (worth $2-$5/share). An all-cash deal implies a quicker close (likely April 2026) and limited equity overhang. We would not be surprised if $Paramount Skydance Corporation - CL B(PSKY.US) raises its bid from $30/share all cash. DOJ still has to approve the NFLX/WBD deal on anti-trust grounds. 4Q actual:- Revs $12.05B vs $11.97B est- OI $2.957B vs $2.886B est- EPS $.56 vs $.55 est2026/1Q guidance:- Revs $12.16B vs $12.17B est- OI $3.91B (incl $0.275B of acquisition expenses) vs $4.18B est- Oper margin 32.1% vs 34.4%est - EPS $.76 vs $.81 est (-$.04/share due to acquisition costs).2026 FY guidance- Revs $50.7B-$51.7B vs $51.0B est- OI $16.1B (at rev midpoint) incl $0.275B acquisition costs vs $16.5B est- Oper Margin 31.5% vs 32.4% estNFLX conf call 4:45pm ETThe copyright of this article belongs to the original author/organization.
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