Nomura Cautious On Netflix, Inc. Estimates

Analysts at Nomura lowered their fiscal year 2015 and 2016 EPS estimates for Netflix, Inc. NFLX due to greater-than-expected international expansion costs.

Analysts at the firm feel that Netflix may struggle to gain market share in Europe due to the well-positioned competition of its peers. More specifically, Germany is well-equipped to fend off Netflix with ProSieben Maxdome, SkyD Snap and Deutsche Telekom.

Anthony DiClemente stated, “While we agree with the strategic merit of international expansion and believe in the long-term synergies with Netflix’s US content partners, we also believe that Street models may currently be underestimating cost assumptions."

Shares of Netflix, Inc. closed at $459.01, up one percent.