) reached a new 52-week high of $229.69 on Monday, May 13, 2013.
The company has recently announced robust first-quarter results
and provided a positive outlook.
The closing price of Netflix on May 13 was $229.38,
representing a phenomenal one-year return of about 198.05% and a
year-to-date return of about 149.3%. Average volume of shares
traded over the last three months stands at approximately
Netflix delivered a positive earnings surprise of 153.9% over
the past four quarters. This Zacks Rank #2 (Buy) company has a
market cap of $12.88 billion and a long-term expected earnings
growth rate of 17.9%.
Robust 1Q for Netflix
Netflix reported first-quarter non-GAAP earnings per share
(excluding loss on extinguishment of debt) of 31 cents which
handily beat the Zacks Consensus Estimate of 18 cents per share.
On a year-over-year basis, reported earnings also improved from a
loss of 8 cents per share.
Total revenue increased 17.7% year over year to $1.02 billion
and was marginally ahead of the Zacks Consensus Estimate. Robust
subscriber additions in Netflix's streaming business (both
domestic and international) led to the better-than-expected
Netflix management forecasts EPS between 23 cents and 48
cents. The Zacks Consensus Estimate for second-quarter 2013 is
pegged at 39 cents. The company expects to expand its subscriber
base for both its U.S. and international operations.
The company is also set to start a 4-stream plan, with
subscription cost of $11.99 for its U.S. subscribers in the near
Following the second-quarter earnings release, the Zacks
Consensus Estimate moved up to 39 cents from 26 cents in the last
30-day period. 12 estimates moved up while only one estimate
moved down during the period.
Netflix has made significant amount of investments to
diversify and improve its content portfolio that makes its
streaming services distinguishable from other service providers.
The improved content portfolio is expected to be incrementally
beneficial for the company in attracting new subscribers as well
as retaining the existing ones. Subsequently, these factors are
expected to drive the company's growth, going forward.
Other Stocks to Consider
Other stocks which provide online video services and are worth
Time Warner Inc
) both of which carry a Zacks Rank #3 (Hold).
) has a Zacks Rank #2 (Buy).
AMAZON.COM INC (AMZN): Free Stock Analysis
NETFLIX INC (NFLX): Free Stock Analysis
TIME WARNER INC (TWX): Free Stock Analysis
VERIZON COMM (VZ): Free Stock Analysis Report
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