Netflix's stock climbs prior to Q4 earnings

Netflix's stock climbs prior to Q4 earnings

Now a decade later, Netflix is hustling to keep up with the industry it helped create. The next step: letting customers download movies onto their devices for offline playback.

Netflix has seen its stock stream to new highs in advance of the Net TV company's Q4 earnings announcement Wednesday.

Several factors have helped drive the stock including streaming provider's ability to continue to deliver new binge-worthy series including The Crown, new takes on A Series of Unfortunate Events and One Day at a Time and the reboot of Gilmore Girls: A Year in the Life.

The Los Gatos, Calif.-based Netflix isn't standing pat. Comedian Jerry Seinfeld will bring his Emmy-nominated Comedians In Cars Getting Coffee series to the service, Netflix announced Tuesday. Seinfeld will also film two new stand-up shows and develop additional programming, building on Netflix's goal to become a comedy destination -- it has already inked deals with Chris Rock and Dave Chappelle.

"Netflix continues to build a highly-moated business and has ample runway for growth as the largest global Internet television destination," said Stifel Analyst Scott Devitt in a note to investors Tuesday. Devitt rates Netflix stock as a Buy with a target price of $150.

Netflix (NFLX) shares hit an intraday high Tuesday of $135.40, before falling back. Shares were up slightly (0.57%) in pre-market trading Wednesday to $133.65. Share are up 23% over the last year and more than 34% over the last six months.

What to look for in Netflix's fourth-quarter 2016 earnings, to be released Wednesday after the market closes:

SUBSCRIBER GROWTH: Netflix predicted growth of 4.5 million during the October-December quarter, which would bring its paying base of streaming subscribers to 87.8 million worldwide. International additions are expected to far outpace new U.S. subscribers. Netflix expected to add 3.35 million new paying international subs and 1.15 million U.S. subscribers.

Devitt expects the streaming TV company to do better than expected by adding 1.87 million U.S new subscribers and 3.55 million international new subscribers. With its growth rate, Netflix "should easily surpass the 100 (million) subscriber milestone during the year," he said.

EARNINGS FORECAST: Netflix forecasted fourth-quarter earnings of 13 cents, compared to 7 cents in the same period a year ago, with net income of $56 million, compared to $43 million a year ago. Wall Street expects 13 cents with net income of $58 million, according to analysts polled by S&P Global Market Intelligence.

REVENUE FORECAST: Analysts expect Netflix total revenue of about $2.5 billion, up 38% from last year. The company’s total streaming revenue forecast targets a 40% increase in Q4 revenue to $2.34 billion.

Mizuho Securities USA Managing Director Neil Doshi expects Netflix earnings and revenue to be in line with Wall Street expectations, but he improved his rating from Neutral to Buy with a price target of $152.

Why? Continued subscriber growth. In addition to new deals with pay-TV providers such as Comcast, he says, the growing number of streaming services such as Sling TV and DirecTV Now, "could benefit Netflix as people might opt for cutting the cord and would be more likely to subscribe to the Netflix service."



Add Comment

all comments

  Other news

more
Trash on the tracks

Trash on the tracks..

22-Apr, 20:18

Up to three trains a week arrive at the Zwentendorf plant. Each carries...

Arthur Collins charged over London nightclub 'acid attack'

Arthur Collins charged over London nightclub 'acid attack'..

23-Apr, 18:23

The boyfriend of The Only Way Is Essex star Ferne McCann has been charged...

Want Nintendo's NES Classic? Better hurry to a Best Buy tomorrow

Want Nintendo's NES Classic? Better hurry to a Best Buy tomorrow..

23-Apr, 19:24

The mini collector's edition NES. Purchases will be limited to one NES...

TOWIE’s Megan McKenna and Pete Wicks REUNITE as star launches brand new Essex restaurant MCK Grill

TOWIE’s Megan McKenna and Pete Wicks REUNITE as star launches brand new Essex restaurant MCK..

23-Apr, 15:18

But now it seems the former couple are attempting to put the past behind...

Father of Tennessee teen: She 'may not be exactly' the person she was prior to alleged abduction

Father of Tennessee teen: She 'may not be exactly' the person she was prior to alleged..

23-Apr, 15:02

The father of the Tennessee teen found more than a month after she was...

Iraqis haunted by war overwhelm mental health facilities

Iraqis haunted by war overwhelm mental health facilities..

10-Apr, 04:10

Six-year-old Mustafa suffers nightmares, cries at the sound of airplanes...

Samsung Galaxy S7: Cutting-Edge Smartphone for the Klutz in Us All

Samsung Galaxy S7: Cutting-Edge Smartphone for the Klutz in Us All..

07-Mar, 00:31

Good looks apparently run in the family. The latest progeny from...

Every Question Episode 3864

Every Question Episode 3864..

17-Feb, 22:28

The following Every Question Episode 3864 English Sub has been released....