Shares of Netflix (Nasdaq: NFLX) are lower on the session
heading into the Company's first-quarter earnings report, expected
out after the market closes Monday.
The Street expects Netflix to report a loss of 27 cents per share
on revenue of $868.1 million. The loss would be a swing from profit
of $1.11 per share on revs of $706 million reported last year and
from EPS of 73 cents Netflix reported last quarter. Netflix also
guided for a loss of 16 cents to 49 cents per share with a revenue
range of $842 million to $877 million.
Netflix gained about 66 percent through the quarter to $115.04 at
the end of March. Shares are 11 percent lower since the end of
March. The move comes as Netflix shed just over 60 percent through
Streaming subs are expected to grow from somewhere between 1.13
million to 1.93 million as losses in DVD-by-mail subs continue to
mount. This is, of course, the direction Netflix wants its subs
base to grow, as indicated by the attempted split of its DVD
business last year.
Data from Bloomberg shows seven analysts currently rate Netflix at
Buy, 19 are at Hold, and nine maintain a Sell-equivalent call. The
Street's price target is $97.50, which ranges from $45 to $140.
Netflix shares have traded between $62.37 and $304.79 over the last
year. Notably, the price target average is suggesting some downside
for Netflix over the next several months.
- Heading into numbers, Wedbush said it's looking for a loss of
16 cents per share with revs of $874 million. The firm says net
sub adds likely exceeded expectations due to "heavy advertising
spending in the second half of the quarter (which negatively
impacted EPS) and the availability of Starz content for the
majority of the quarter (though the end of February)..."
Looking ahead, Wedbush sees Netflix management maintaining its
outlook. With investors focus resting on subs growth, the firm
sees Netflix stopping at nothing to grow that metric...including
spending more on advertising.
- Janney Capital is cautious into the quarter and sees a loss
of 23 cents per share and recently cut its US streaming sub
estimate from 24.4 million to 23.2 million and DVD sub number
from 10.3 million to 9.7 million.
The firm said recent Internet tracking data has deteriorated,
NFLX has modified its acquisition philosophies, and CSTR has
posted better DVD results. Taken this data together they are
negative into the print.
Stay tuned to StreetInsider.com's
section to see our analysis of the highly-anticipated quarterly
results within seconds of their release. You can also check out
Netflix's past performance at Streetinsider's
Netflix''s Income Statement