Netflix, Inc. NFLX is scheduled to report first-quarter results April 16 after the close. The print is likely to come in ahead of consensus estimates due to a strong content slate, new distribution partners and returns from marketing investments, according to Goldman Sachs.
The Analyst
Goldman Sachs' Heath Terry maintains a Buy rating on Netflix's stock with a price target lifted from $315 to $360.
The Thesis
Terry is modeling for the following metrics in Netflix's Q1 report. (See the analyst's track record here.)
- 1.7 million net subscriber additions in the U.S. market and 5.6 million international net subscribers versus Netflix's guidance of 1.45 million and 4.9 million, respectively.
- Average revenue per user growth of 10.5 percent domestically and 20.5 percent internationally.
- Revenue of $3.7 billion.
- Incremental marketing spend that will result in marketing deleverage of 320 basis points versus last year.
- Net income of $284.1 million.
- Earnings per share of 63 cents.
Beyond Q1, Terry said he expects the following from Netflix:
- Cash burn that grows from $2 billion in 2017 to $3 billion for the full year 2018.
- 6 million net adds in the second quarter versus the consensus estimate of 5.2 million net adds.
- Longer-term subscriber growth and profit that exceeds consensus estimates.
Price Action
Shares of Netflix were trading higher by 3.75 percent at the time of publication Wednesday morning.
Blockbuster Q4 Shows Netflix Still Wears The Crown
Here's Why Netflix Is Still In The 'Early Stages'
© 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.