Will Netflix's Earnings Double This Quarter?

Shares of Netflix, Inc. NFLX are surging in Tuesday’s after-hours, after falling 0.71 percent during the trading day, ahead of the announcement of the company’s second quarter financial results, scheduled for after the market closes on Wednesday.

This will be the first quarter to be reported with an adjusted share count, post-split. For the period, the Street is modeling consensus earnings of $0.32 per share on revenue of $1.646 billion, while the crowd is projecting earnings of $0.45 per share on sales of $1.654 billion. These figures compare to earnings of $1.15 per share on revenue of $1.34 billion reported a year ago.

Investors should keep in mind that Netflix’s stock will be split in a seven-to-one basis, meaning that the earnings of $1.15 reported in the second quarter of 2014 would equate to $0.164 per share given the current share count. This means that expectations point towards a year-over-year earnings growth of at least 100 percent.

Analysts Weigh In

In a recent report, MKM Partners’ Managing Director Rob Sanderson previewed Netflix’s earnings, which he expects to come in at $0.28 per share, on revenue of $1.65 billion.

Related Link: Pacific Crest Expects Netflix's Q2 To Be 'At Least In Line,' Reiterates Overweight

Also recently, Pacific Crest analysts Andy Hargreaves and Evan Wingren said they expect earnings “at least in line” with their expectations and normal seasonality, anticipating at least 600,000 net subscriber additions in the U.S., and 1.9 million additions internationally, in line with management’s guidance.