Market Overview

Baird Expects A Strong Q1 At Netflix

Share:
Related NFLX
How 40-Year Wall Street Veteran Marc Chaikin Came Out Of Retirement To Help You Find Your Next Trading Idea
Will Netflix Be Drowned By The Content-On-Demand Wave It Helped Create?
My Netflix Annual Update: The Stock Is Up 50% And Clearly Overvalued (Seeking Alpha)

Netflix, Inc. (NASDAQ: NFLX) is scheduled to report its first quarter financial results on April 15. In a report published Wednesday, Baird analysts William V. Power and Steven J. Beckert provided a preview of the earnings call.

According to the note, the firm's latest consumer survey suggests strong growth in the U.S. for the first quarter. They also suspect "House of Cards'" third season, along with positive reactions to "Unbreakable Kimmy Schmidt" and "Bloodline" were key drivers.

Based on these factors, Baird remains positive on the 2015 and longer-term outlook and reiterated an Outperform rating, accompanied by a $505 price target.

The Survey

According to Baird's subscriber survey, sample penetration in the U.S. for the first quarter reached 43 percent. This implies a substantial increase from the previous quarter's 35 percent, and the 31 percent penetration from one year ago. The firm is now forecasting 2.1 million paid net additions in the first quarter, which they believe may be a conservative estimate – especially when compared to the 2.7 million additions a year ago.

The analysts also expect solid international results, driven by recent new market launches and forecast first international paid net additions of 2.4 million – versus 2.0 million a year ago.

Overall, the analysts forecast first quarter consolidated revenue and EPS of $1.57 billion and $0.63, versus consensus of $1.57 billion and $0.64.

Latest Ratings for NFLX

DateFirmActionFromTo
Jan 2017Loop CapitalMaintainsBuyBuy
Jan 2017MacquarieUpgradesUnderperformNeutral
Jan 2017MizuhoUpgradesNeutralBuy

View More Analyst Ratings for NFLX
View the Latest Analyst Ratings

Posted-In: Baird Bloodline House of Cards Steven J. BeckertAnalyst Color Reiteration Analyst Ratings Tech

 

Related Articles (NFLX)

View Comments and Join the Discussion!