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 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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