Will Netflix (NFLX) Stock Be Helped by Upcoming Earnings Release?
By Amanda Gomez[url=]Follow[/url]| 01/15/16 - 12:38 PM EST
NEW YORK ( TheStreet) -- Analysts are expecting Netflix ( NFLX - Get Report) to report strong results that are in line with estimates when the video streaming service releases its 2015 fourth quarter financial results after the market close on Tuesday, Cantor Fitzgerald said in an analysts note Friday morning.
The company has been forecast to post a year-over-year drop in earnings, but a sharp increase in revenue.
Analysts have estimated earnings of 2 cents per share for the latest quarter, compared with non-GAAP earnings of 72 cents per diluted share that the company reported for the 2014 fourth quarter.
Revenue is expected to increase 22.9% to $1.83 billion because of noteworthy new releases, including "Marvel's Jessica Jones," "Master of None" and "Beast of No Nations," as well as the October price increase.
"Given the company's significant subscriber growth potential, expanding original content slate and unmatched value proposition, we view Netflix as a key beneficiary from the ongoing shift from linear to on-demand viewing and unbundling," analysts added.
Netflix stock is declining 4.65% to $102.08 in early afternoon trading on Friday along with the overall market, which is being pressured by falling oil prices, weak U.S. retail sales and other global economic factors, according to Reuters.
Separately, Netflix has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's deteriorating net income, generally higher debt management risk and disappointing return on equity. The company does have some strengths, however, such as solid stock performance, robust revenue growth and expanding profit margins.
You can view the full analysis from the report here: NFLX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
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