In the past year, Netflix (NFLX) has outperformed the EPS estimates 75% of the time, and the revenue estimates 50% of the time, surging 31,1% year over year in the third quarter to $5.25 billion. The company reported third-quarter earnings on Oct. 16, posting earnings per share of $1.47. Analysts had been expecting EPS of $1.03. Netflix added 500,000 new U.S. subscribers and 6.3 million international users last quarter—just shy of Wall Street estimates and its very own guidance. However, Netflix stock rose 2.5% the following day.
For the previous quarter, the consensus EPS estimate for Netflix stock is $0.52 (+73.3% Y/Y), and the consensus Revenue Estimate is $5.45B (+30.1% Y/Y). Wall Street analysts are bullish on the stock, with 63% having a Buy or equivalent rating, while 26% recommending a Hold. According to TipRanks the average price target is $365.85 with a high forecast of $450.00. The average price target represents a 7.71% increase from the last price of $339.67.
The company expects to add 7.6 million paid net members globally. 600,000 of those net member additions could come from its core domestic market. Traders will also look out for Netflix's guidance on subscriber growth in Q1 2020. Its outlook for the period will provide insight into how the company's member growth is trending so far in 2020.
Sources: barrons.com, fool.com, seekingalpha.com, tipranks.com
The information presented herein does not constitute and does not intend to constitute Investment Advice. The information contained herewith is a compilation of public stock recommendations issued by various financial analysts and organized in an easily presentable format, for information purposes only. Key Way Investments Ltd does not influence nor has any input in formulating the information contained herein. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience, or current financial situation. Users/readers should not rely solely on the information presented herewith and should do their research/analysis by also reading the actual underlying research. Users/readers should also consider the risk of encountering significant losses when trading CFDs. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.