Markets

How to trade Netflix (NFLX) Ahead of Earnings

On Monday July 18 th , Netflix (NFLX) will release its second quarter earnings results. The company is currently a Zacks Rank #3 (Hold) and shares are down more than 14% year-to-date.

David Bartosiak will look into Netflix's past earnings, look at what is currently going on with the company, and gives us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will look into some potential options trades for investors looking to make a play on Netflix ahead of earnings.

Netflix Inc. in Focus

Netflix Inc. is an Internet television network that engages in the Internet delivery of TV shows and movies on various internet-connected screens. The company operates in three segments: Domestic streaming, International streaming, and Domestic DVD.

Netflix is coming off of a quarter in which it beat earnings estimates by 100%, posting EPS of $0.06, higher than the estimate of $0.03. The company has been on a streak of doing well when it comes to earnings reports, as it has been able to meet or beat estimates in each of the last 4 quarters, with an average surprise of 92.50%.

NETFLIX INC Price, Consensus and EPS Surprise

NETFLIX INC Price, Consensus and EPS Surprise | NETFLIX INC Quote

Heading into this earnings report, our Most Accurate Estimate for Netflix is $0.02. Zacks Data shows that Netflix has an earnings surprise prediction figure of 0%, as the consensus estimate and most accurate are both $0.02.

Netflix has had a rocky past couple of months as investors continue to focus on its growth potential outside of the US and overseas. Analysts and investors have become wary about the size of Netflix's potential future paying subscribers, or total addressable market, as growth in paying subscribers has been slowing as of late.

Netflix Price, Consensus and EPS Surprise

Subscribe to our channel to be notified of future live streams and make sure to check out our other videos for more stock information.

Dave Bartosiak is the editor of the Momentum Trader and Home Run Investor service. He has over a decade of experience in the financial services industry. He has traded forex, futures, stocks, and options. Mr. Bartosiak is a frequent guest on popular business news TV channels such as Bloomberg TV. He's also the host of a light-hearted, Millennial-minded series of videos called "Trending Stocks."

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NETFLIX INC (NFLX): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

NFLX

Other Topics

Earnings Stocks