Bernstein’s Carlos Kirjner mentioned Netflix, Inc. NFLX's mixed results for Q1, while issuing subscriber addition guidance for Q2 that was below expectations.
Kirjner maintained an Underperform rating on the company, with a $62 price target.
Q1 Results
The analyst mentioned the company’s “consolidated revenues of $1,958 million came just shy of consensus at $1,970 million, while operating income of $45 million was a few million dollars below expectations of $55 million.”
However, both domestic and international net additions beat the consensus and the guidance.
Q2 Guidance
On the other hand, management guided to weaker-than-expected domestic and international streaming net additions for Q2, at 0.5 million domestic net adds and 2 million international net adds.
“After two quarters in a row of significant deceleration, domestic net adds were just shy of flat YoY in 1Q16. However, guidance indicated a material YoY decline in net adds going forward,” Kirjner stated.
The analyst added that it was difficult to justify Netflix's current valuation.
The stock traded recently at $96.84, down 10.7 percent on the day.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.