Netflix, Inc.(NASDAQ:NFLX) is all set to report its second quarter
earnings today after the market close with analysts are estimating the company
to report a sharp decline in its earnings, while revenue is projected to grow
by double digit.
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Average analysts forecast Netflix to report 5 cents a share
of profit, well below from its year ago profit of $1.26. Revenue is projected
to grow by 12.70% year over year to $888.90 million, from $788.61 million a
year ago. Investors would look for the company’s
addition of subscribers during the quarter as well what the company’s say about
its future subscribers target.
In the first quarter, the company had reported higher than
estimated earnings and revenue and said DVD members declined to 10.1M in Q1;
the company said domestic streaming members rose by 1.7M to 23.4M. The company
has a goal of achieving 7M net subscriber additions in 2012.
Get Before Earnings
report on U.S.
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In the past, the company has beaten analysts’ estimates in
all the four consecutive quarters. However, shares of the company had slump in
September last year after the company reported a sharp decline in its
subscribers triggered by the company’s decision to raise U.S. prices for video
subscription services. Since then, the company failed to get back its lots
glory and hence the stock made a new low of $60.70 in June.
Shares of NFLX are up 2% to $81.52.
Analyst Views
ITG Research says Netflix checks indicate domestic ARPU fell
in Q2 as more subscribers traded down from higher priced plans. Barclays
believes Netflix will report a gain of about 700,000 domestic streaming
subscribers. Analysts and investors will listen for comments from the company
on its Q3 forecast, whether it still plans to add 7M net subscribers this year
and on its international expansion efforts.
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