Netflix Inc (NFLX) and Johnson & Johnson (JNJ): Q4 2024 earnings reports and stock forecasts

Netflix Inc. reported a 99% rise in income, while Johnson & Johnson announced a 17% decline. As a result, Netflix stock has reached a new historical high and is moving towards 1,000 USD per share, while Johnson & Johnson shares, following recent growth, have entered a decline and are approaching a local low of 140 USD.

The article presents the key figures from Netflix Inc. and Johnson & Johnson’s quarterly earnings reports, along with a technical analysis of NFLX and JNJ, which form the basis for Netflix Inc. and Johnson & Johnson’s stock forecasts for Q1 2025.

Netflix Inc.’s Q4 2024 report

For Netflix Inc. (NASDAQ: NFLX), Q4 2024 was characterised by stronger-than-expected financial performance in subscriber growth and financial results. The company reported revenue of 10.25 billion USD, a 16% year-on-year increase, exceeding the consensus forecast of 10.11 billion USD. EPS came in at 4.27 USD, up 102% from last year and surpassing expectations of 4.18 USD. Netflix added a record 19.00 million new paying subscribers during the quarter, bringing the total to 301.63 million, considerably above the anticipated 9.18 million. This marked one of the company’s largest-ever quarterly net additions, driven by strong content offerings and typical seasonal user activity.

Operating income for Q4 reached 2.27 billion USD, reflecting a 52% year-on-year rise, with an operating margin of 22%, up from 17% a year earlier. Net income increased to 1.87 billion USD, representing a 99% year-on-year growth. Free cash flow for the quarter was recorded at 1.38 billion USD, indicating stable cash generation during this period.

Netflix’s achievements were supported by successful content releases such as “The Crown” and “The Killer” and heightened client engagement through ad-supported subscriptions and international market expansion. Although the advertising business is not positioned as a primary revenue source, the company anticipates significant growth in this segment in 2025.

2024 full-year performance:

Netflix generated an annual revenue of 39.00 billion USD, up 16% from 2023. Annual operating income reached a record 10.00 billion USD, with an operating margin of 27%. These results highlight Netflix’s strategic focus on profitability, content quality, and subscriber engagement.

Netflix forecasts income of 10.42 billion USD in Q1 2025, an 11% year-on-year increase. EPS is expected to reach 5.58 USD, up 5% from the previous year. These projections reflect Netflix’s expectations for membership growth, pricing adjustments, and advertising revenue within the framework of its business strategy for the quarter.

Netflix Inc.’s stock price forecast for Q1 2025

On 18 November 2024, Netflix stock broke above the upper boundary of an ascending channel, indicating a high probability of further price growth by the channel width. However, divergence is forming on the MACD indicator, which may signal the beginning of a correction. Based on the current Netflix stock performance, two potential scenarios are considered for Q1 2025.

The primary forecast for Netflix stock suggests growth to the 1,050 USD resistance level, followed by a rebound and decline to 800 USD. This would be a correction within a stronger uptrend.

The alternative forecast for Netflix stock predicts a breakout above the 1,050 USD resistance level. In this case, growth targets would be the 1,100 and 1,180 USD resistance levels, determined using Fibonacci levels.

Johnson & Johnson’s Q4 2024 report

On 22 January 2025, Johnson & Johnson delivered strong results for Q4 2024. The company’s revenue amounted to 22.52 billion USD, slightly exceeding the consensus forecast of 22.46 billion USD, showing a 5.3% growth from last year. Adjusted EPS were 2.04 USD, above the expected 2.02 USD. However, net income decreased by 17% year-on-year, coming in at 3.43 billion USD. Sales of the pharmaceutical and medical divisions grew by 4.4% and 6.7%, respectively, driving overall revenue growth.

The report signals stable revenue growth while showing profitability issues, probably due to various operating costs or non-recurring expenses not reflected in the adjusted figures.

In its fiscal 2025 outlook, J&J expects revenue between 89.20 and 90.00 billion USD, with adjusted EPS ranging between 10.50 and 10.70 USD. These figures were slightly below analysts’ expectations, who predicted revenue of 91.18 billion USD and EPS of 10.54 USD.

Although the company did not provide any specific forecasts for Q1 2025, the full-year strategy indicates a cautious approach, which may be attributed to competitive pressures.

Johnson & Johnson’s stock price forecast for Q1 2025

On the daily timeframe, Johnson & Johnson stock is trading between 140 and 170 USD, currently positioned at the lower boundary of this range. Depending on how the situation unfolds near the 140 USD support level, possible price movement scenarios for Q1 2025 are outlined below.

The optimistic forecast for Johnson & Johnson stock suggests a breakout above the 140 USD resistance level, followed by price growth towards the upper boundary of the range at 170 USD.

The negative forecast for Johnson & Johnson stock suggests a breakout below the 140 USD support level, with a price decline to 125 USD. This scenario appears more likely, considering the decrease in net income and the cautious financial outlook for 2025.