What To Expect From Netflix's Earnings Report After The Bell

A look at Netflix's subscriber numbers, especially for its ad-supported tier, will be closely monitored after the bell on Tuesday.

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The company still reports its total user count, in the U.S. as well as globally, every quarter, even without providing guidance for subscribers.

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Among the analysts surveyed by Refinitiv, Wall Street expects:

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Earnings per share: $2.86 is expected

Revenue: Expected to reach $8.18 billion

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Its shares, along with those of its media peers, plunged last year after Netflix reported its first subscriber loss in a decade. Netflix and its streaming rivals were forced to focus on profits over subscriber numbers as a result of these results.

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There will be an emphasis on the results of the new ad-supported tier in the country. A cheaper version of Netflix with commercials launched last November for $6.99 a month. Streaming competition ramped up shortly after the ad-supported tier became available.

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A new tier of ad-supported subscriptions is likely to be offered by the company in the future, according to co-CEO Ted Sarandos.

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Netflix's crackdown on password sharing is another focus for Wall Street. People who have been borrowing other accounts would be able to create their own accounts by late last year.

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Approximately 43% of the company's global user base share accounts, or more than 100 million households. A lack of investment in new content has adversely affected Netflix's ability to make new acquisitions. Password sharing and ad-supported options are intended to increase profits.

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Password-sharing guidelines were released by Netflix in four countries: New Zealand, Canada, Portugal, and Spain. For users in those countries, the company says it will ask them to set up a "primary location" and allow them to establish up to two "sub accounts" for people who don't live nearby.

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Although it is expected to provide U.S. password-sharing guidance this year, the company has not yet done so.

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