From the article linked on the previous page, Netflix reports earnings next Tuesday (10/16), after market close. Here is what to expect:
Subscriber growth: Analysts polled by FactSet are expecting 5.32 million net additions to the Netflix subscriber base, similar to the 5.3 million figure Netlfix reported for the third quarter of 2017. That’s higher than Netflix’s own forecast of 5.0 million, with 0.65 million from the U.S. and 4.35 million internationally.
Earnings: Analysts polled by FactSet expect Netflix to post earnings of 68 cents a share, a 134% increase from the third quarter of 2017.
Estimize, which crowd sources estimates from buy-side and sell-side analysts, fund managers, academics and others, is expecting EPS of 70 cents.
Revenue: Analysts polled by FactSet expect revenue of $4 billion, with $1.94 billion in domestic streaming revenues and $1.97 billion in international streaming revenues. Domestic DVD-by-mail revenue is expected to be $88 million. Netflix reported revenue of $2.98 billion in the third quarter of 2017. Estimize also pegs revenue at $4 billion.
Stock movement: Netflix shares were trading just above $322 Thursday afternoon, a drop from its mid-summer high of nearly $419, but 68% above where it ended 2017. The S&P 500 has gained 2.8% year to date.
Of the 44 analysts on FactSet who cover Netflix, 27 rate the stock a buy or overweight, 13 are neutral and four are at underweight or sell. The average price target is $382.66, which is about 19% above current levels.
Looking ahead: Investors should keep an eye on Netflix’s fourth-quarter plans, any specifics on their plans for growth India, and, as usual, any commentary on future content spending. Netflix’s fourth-quarter originals roster includes the final season of “House of Cards” and the debut of “Chilling Adventures of Sabrina,” based on Sabrina the Teenage Witch.
The FactSet consensus for fourth-quarter net subscriber additions is 8.35 million. |
