Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Netflix will probably post gain in 1Q earnings per share on international growth

Streaming media company has been targeting international growth amid competition at home
Netflix logo on a computer screen
The streaming giant in January forecast 6.35 million net subscriber additions for the quarter

Netflix Inc. (NASDAQ:NFLX) will probably report a 58% gain in earnings per share in the first quarter, helped by the video-streaming giant’s international subscriber growth.

Net income per share will probably rise to US$0.63 from US$0.40 in the year-earlier quarter, according to estimates from Zacks and FactSet. The company reports earnings results after the market close.

The company in January forecast 6.35 million net subscriber additions for the first quarter, with 1.45 million from the US and 4.9 million internationally. Investors also will be focused on Netflix net subscriber additions, as well as the firm’s operating margins, which it expects to increase as much as 10%.

Netflix has changed the industry in a “profound way,” giving it a “significant” lead and making it difficult for traditional media companies to catch up, cited Deutche Bank analyst Bryan Kraft as saying. Kraft increased his rating to Buy from Hold and raised his price target for the stock to US$350 from US$240, it said.

Netflix has been focused on garnering more international customers as US subscriber growth slows amid more fierce competition from services including Hulu and Alphabet Inc.'s (NASDAQ:GOOG) YouTube.

The California-based company has said its investment into original programming in recent years is paying off, culminating in a record 8.3 million subscribers being added in the three months to the end of December.

Viewers were drawn in by new seasons of shows including The Crown and Stranger Things – with the latter cementing its place as a “global phenomenon” following the release of its second series.

The company beat analyst expectations for subscriber growth in the fourth quarter, adding more than 8 million users, compared with expectations of 6 million, according to FactSet.

View full NFLX profile View Profile

Netflix Timeline

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use