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What to Expect When Netflix Reports After the Close

Netflix Inc. (NASDAQ: NFLX) is scheduled to release its most recent quarterly results after the markets close on Tuesday. Thomson Reuters consensus estimates call for $0.68 in earnings per share (EPS) and $4.0 billion in revenue. The third quarter of last year reportedly had EPS of $0.29 and $2.98 billion in revenue.

Netflix has plans to roll out even more international content in the coming years, In fact, the online streaming service plans to double its investments in France and produce 14 local shows, twice as many as previously planned, according to CEO Hastings in September.

Earlier this quarter it was announced that Netflix’s chief financial officer, David Wells, will be stepping down. Wells joined Netflix in 2004 and has served as CFO since 2010. He has not yet set a date for when he will depart, but until then he plans to help the company choose his successor.

Netflix has been wildly successful under Wells’s guidance. Keep in mind that Netflix was only about a $10 stock at the end of 2011, and since then it has grown over 3,300% to the current price level.

Excluding Tuesday’s move, Netflix has outperformed the broad markets, with its stock up about 67% in the past 52 weeks. In just 2018 alone, the stock is up closer to 74%.

A few analysts weighed in on Netflix ahead of the report:

  • Citigroup has a Neutral rating.
  • Morgan Stanley has a Buy rating with a $450 price target.
  • Raymond James has an Outperform rating and a $400 target.
  • Goldman Sachs has a Buy rating with a $430 target price.
  • Wedbush has a Sell rating with a $125 target price.
  • JPMorgan has a Buy rating and a $415 price target.
  • Stifel has a Buy rating with a $395 price target.

Shares of Netflix were last seen up less than 1% at $335.49 on Tuesday, with a consensus analyst price target of $379.73 and a 52-week trading range of $178.38 to $423.21.

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