What to Expect When Netflix Reports After the Close
Netflix, Inc. (NASDAQ: NFLX) is scheduled to release its second quarter financial results after the markets close on Monday. Thomson Reuters has consensus estimates that are calling for $0.16 in earnings per share (EPS) and $2.76 billion in revenue. The…
Netflix, Inc. (NASDAQ: NFLX) is scheduled to release its second quarter financial results after the markets close on Monday. Thomson Reuters has consensus estimates that are calling for $0.16 in earnings per share (EPS) and $2.76 billion in revenue. The same period from last year had $0.09 in EPS and $2.11 billion in revenue.
Three out of four U.S. households that view streaming video content use Netflix Inc. (NASDAQ: NFLX). In the half of households that use only one streaming app, that one app is Netflix. Alphabet’s YouTube garners 25% of households that use only a single app.
In terms of penetration, Netflix is available in 40% of Wi-Fi-equipped households, with YouTube running in second place with about 30% penetration. Amazon Video is used in about 18% of Wi-Fi households and Hulu in about 12%. Hulu is jointly owned by media giants Disney, Comcast, Fox and Time Warner.
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In streaming-only households, Hulu tops Netflix in viewing hours per month, 36.8 hours to 35.6 hours. Among cord-cutter households, Netflix gets 38 monthly over-the-top viewing hours to Hulu’s 36. Among cord-never households, Netflix gets 35 monthly viewing hours to Hulu’s 32. YouTube and Amazon trail by significant margins in both categories.
Ahead of the earnings report, a few analysts weighed in on Netflix:
- Cowen has a Buy rating with a $170 price target.
- FBR has a Market Perform rating with a $145 price target.
- Cantor Fitzgerald has an Overweight rating with a $190 price target.
- Morgan Stanley has an Overweight rating with a $185 price target.
- Wedbush has an Underperform rating with a $73 price target.
- Credit Suisse has a Neutral rating with a $154 price target.
- MKM Partners has a Buy rating with a $195 price target.
- Jefferies has a Hold rating with a $141 price target.
- Goldman Sachs has a Buy rating with a $175 price target.
- Guggenheim has a Buy rating with a $180 price target.
- Canaccord Genuity has a Buy rating with a $175 price target.
Excluding Monday’s move, the stock has outperformed the broad markets and is up about 30% year to date. Over the past 52-weeks, the stock is up closer to 65%.
Shares of Netflix were last trading up nearly 1% at $162.70, with a consensus analyst price target of $160.68 and a 52-week range of $84.50 to $166.87.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
