STICKY
Streaming giant Netflix (NFLX) is due to release its first quarter results for this year tomorrow, April 17. The stock is notoriously volatile with prices up 65% in the past year, but down from $148 to $143 in the past month. We decided to check in and see what the top-rated analysts on Wall Street are forecasting for this quarter’s earnings results and beyond.
From TipRanks’ earnings calendar we can immediately see that the consensus EPS (earnings per share) estimate for this quarter is $0.37 vs the same period last year of $0.06- giving some indication of how quickly the company has grown. Tomorrow we will see whether Netflix beats or misses this expected EPS- a beat could see shares soar while a miss would likely lead to a price pullback.
The Bulls
Top Wall Street analysts Mark Mahaney from RBC Capital and Cantor Fitzgerald’s Kip Paulson are both exactly on-line with consensus with their $0.37 forecasts. Specifically, Mahaney predicts total revenue of $2.64 billion, with domestic streaming subscriber additions of 1.50 million and international streaming subscriber additions of 3.70 million.
Looking forward Mahaney notes that the June quarter is “a seasonally soft” quarter for Netflix but adds that “unambiguously positive” US survey results from RBC’s quarterly survey show record usage levels (55% now use Netflix to watch Movies & TV shows) and record-high satisfaction levels.
TipRanks reveals that five-star Mark Mahaney- one of the financial accountability engine’s top 25 tech analysts– has an impressive track record of Netflix ratings:
Meanwhile Kip Paulson says “It’s all about international subs from here”. He believes that while domestic subscriber growth will be limited to the single digits, potential for international growth is far more promising, adding, “And internet/broadband penetration should only rise over time.”
