and there are also hounds nipping at their heels
To high a valuation they needed a sound beat to justify those earlier price targets of $300+ ....now guiding
down & light on revs , not now , the free pass for them is over this $250 is lower support....
will it act as support ?
(They'll really have to spend for content, no mention of this ...selection they had
held my interest for 2wks & far too long a wait for fresh movies to become available)
NFLX Netflix beats by $0.14, reports revs in-line; guides Q3 EPS below consensus, revs below consensus (281.53 +4.95)
Reports Q2 (Jun) earnings of $1.26 per share, $0.14 better than the Capital IQ Consensus Estimate of $1.12; revenues rose 51.7% year/year to $788.6 mln vs the $791.2 mln consensus. NFLX sees Q3 Total subscribers of 24.6-25.4 mln . Co issues downside guidance for Q3, sees EPS of 0.72-1.07 vs. $1.08 Capital IQ Consensus Estimate; sees Q3 revs of $799.5-828.5 mln vs. $845.58 mln Capital IQ Consensus Estimate.
Pricing Commentary: It is expected and unfortunate that our DVD subscribers who also use streaming don't like our price change, which can be as much as a 60% increase for them from $9.99 to $15.98, when it goes into effect for each subscriber upon their renewal date in September. Some subscribers will cancel Netflix or downgrade their Netflix plans. We expect most to stay with us because each of our $7.99 plans is an incredible value. We hate making our subscribers upset with us, but we feel like we provide a fantastic service and we're working hard to further improve the quality and range of our streaming content in Q4 and beyond.
Pricing Changes and Effect on Subscribers: In Q3 we will see only the negative impact of the pricing change, given that the announcement was early in the quarter and that the increases won't take effect until late in the quarter (September 15th on average). We expect domestic net additions in Q3 to be lower than the previous year Q3, and because of the timing of the price change, revenues will only grow slightly on a sequential basis. In Q4, we expect domestic net additions to return to a pattern of year-over-year growth while revenue will reflect a full quarter's impact of the pricing changes, which |
