'The Crown' Will Bolster Netflix's Q4 Numbers

Similar to the “runaway success” of "Stranger Things," Loop Capital’s David W. Miller expects "The Crown" to drive subscriber figures for Netflix, Inc. NFLX in Q4, which will become apparent when the company reports its results on January 16.

Miller maintains a Buy rating on the company, with a price target of $151.

Positive Response

“With the quarter winding down, we are modestly improving our subscriber outlook for both the domestic and international platforms due primarily to the universally positive response seen this far for The Crown,” the analyst mentioned.

Although not confirmed by Netflix, several trade reports have pegged the cost of the series at a reported $110 million for 10 episodes.

Since its debut on November 4, the series has received positive reviews all round, and given that 2.2 billion people live in the ex-British commonwealth nations, Miller pointed out that the series has “true global appeal.”

In addition, several trade publications have also confirmed that a second season has already received the go-ahead, with the writing team reportedly already working on three additional seasons after that.

“Knowing the NFLX management team as we do, this simply would not happen unless the subscribership numbers were there to back it up,” the analyst stated.

Estimates Raised

The Q4 domestic subscriber estimate has been raised from 1.45 million to 1.47 million, while the international subscriber estimate has been raised from 3.75 million to 3.79 million.

The revenue, EBIT and EPS estimates have accordingly been raised.

Image Credit: By Geom (Own work) [CC BY-SA 4.0 or Public domain], via Wikimedia Commons