Market Overview

Some Things To Consider Ahead Of Netflix's Q4 Earnings

Share:
Some Things To Consider Ahead Of Netflix's Q4 Earnings

Netflix, Inc. (NASDAQ: NFLX) is scheduled to report its fourth quarter earnings Jan. 22, which may convince some of Wall Street's neutral or bearish analysts into becoming positive.

The Analyst

Baird Equity Research's William Power maintains a Neutral rating on Netflix's stock with an unchanged $190 price target.

The Thesis

Netflix is likely to report solid U.S. subscriber growth metrics and strong growth in the international segment, Power said in a note. At the same time, investors need to be mindful of the competitive landscape in the streaming video market on top of Netflix's "significant ongoing" cash burn.

Here is a summary of what the analyst is modeling for Netflix's earnings report:

  • U.S. penetration rose 200 basis points to 47.3 percent;
  • Netflix likely added 1.25 million total U.S. net additions which would mark a decrease from 1.93 million a year ago;
  • Netflix is likely to report 5.05 million total net additions in the international market versus 5.1 million a year ago;
  • 2017's price increase is likely to have a "muted impact" but could increase churn and impact margins; and
  • Netflix is projected to report total Q4 revenue of $3.3 billion, EPS of 41 cents, contribution margin of 34.4 percent (down from 38.2 percent last year).

Price Action

Shares of Netflix gained 2 percent Wednesday and hit a new all-time high of $205.05.

Related Links:

Wall Street Praises Netflix's Outlook As Price Increases Begin To Take Effect

Tech Expert Breaks Down The FAANG's 2018 Outlook

Latest Ratings for NFLX

DateFirmActionFromTo
Oct 2019MaintainsOutperform
Oct 2019DowngradesOverweightUnderweight
Oct 2019MaintainsNeutral

View More Analyst Ratings for NFLX
View the Latest Analyst Ratings

Posted-In: Baird Netflix International Netflix Subscribers streaming videoAnalyst Color Previews Analyst Ratings Trading Ideas Best of Benzinga

 

Related Articles (NFLX)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
ELMDDougherty & Co.Initiates Coverage On12.0
MRNSCantor FitzgeraldAssumes7.0
MNRLCapital One FinancialInitiates Coverage On23.0
SONVertical GroupUpgrades
UNPMorgan StanleyMaintains136.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

9 Stocks Moving In Wednesday's After-Hours Session

Analyst: Tougher 2018 Setup Likely To Weigh On Wayfair