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Saturday, July 21, 2012

Netflix earning estimated report july 24 2012

Netflix Q3 earning estimated report july 24 2012 : Netflix Inc. ( NFLX ) is scheduled to announce its fiscal second quarter 2012 results after the closing bell on July 24, 2012. In the run up to the earnings release we do not notice any significant estimate revision by the analysts. We note that Netflix has outperformed the Zacks Consensus Estimate in the preceding four quarters by a positive 34.95%. We expect this trend to continue in the current quarter.

Netflix reported first quarter 2012 loss per share of 8 cents, which not only outpaced the Zacks Consensus Estimate of a loss of 28 cents, but was also significantly above management's guided range of a loss of 49 cents to a loss of 16 cents per share. However, when compared on a year-over-year basis, Netflix's loss per share had plummeted from earnings per share (EPS) of $1.11.

Total revenue increased 21.0% year over year to $869.8 million, ahead of the Zacks Consensus Estimate of $867.0 million. The year-on-year revenue growth was primarily boosted by newer additions in the total subscriber base.

In the last 30 days, one out of the 27 analysts covering the stock revised their estimates downward, while no upward revision was noticed. However, the Zacks Consensus Estimate for the second quarter 2012 remained at 4 cents, within management's the guided range of (10 cents) to 14 cents.
For the second quarter, the revenue estimate as per the Zacks Consensus is $889.0 million, which lies within management's guided range of $873.0 million to $895.0 million.

Analysts expect the company to report decent quarter driven by higher subscription growth. The company has been adding content for its streaming business to make its offering more diverse. However, the new licensing agreements would put pressure on the company's cash flow. Moreover, investments made to expand into the international regions might contract margins.

Recommendation
We believe Netflix's offering of new and exclusive contents is the biggest USP compared to some of its closest peers. Apart from recent movies and documentaries, Netflix is also boosting its original content portfolio to entice new subscribers in the US and international markets.

Analysts by Thomson Reuters
Netflix, Inc. (Nasdaq: NFLX) is an Internet subscription service streaming television shows and movies. The company has a market capitalization of $4.6 billion. It is expected to report FY 2012 second-quarter EPS of 5 cents on revenue of $888.9 million, compared with a profit of $1.26 a share on revenue of $788.61 million in the year-ago period. Netflix is trading around $82.8 a share. So far this year, the stock has gained 19.69 percent.

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