Netflix Earnings Estimate Consensus at $.55 EPS
Netflix (NASDAQ:NFLX) is expected to report Q4 earnings after the market close on Wednesday, January 25 with a conference call scheduled for 6:00 pm ET. Analysts are looking for EPS of 55c on revenue of $857.6M. The consensus range is 40c-70c for EPS, and $816.8M-$894.63M for revenue, according to First Call.
In October, Netflix (NASDAQ:NFLX) guided Q4 EPS 36c-70c and said Q4 DVD subscriptions would decline sharply due to price changes. Earlier this month, CEO Reed Hastings said the company will lose $70M this quarter on its international expansion, paidContent reported. Hastings said U.S. subscribers turned up in the back half of Q4 and said the company does not expect to raise fresh capital this year, Reuters reported. Hastings also reiterated that the cost of international expansion would contribute to an overall loss at Netflix this year and declined to say whether the company could turn profitable during the course of the year.
The company recently launched in the U.K. and Ireland and also appointed Jessie Becker as interim Chief Marketing Officer and Jonathan Friedland, Chief Communications Officer. With 2012 a transition year for the company, Piper Jaffray thinks many investors are already looking out to 2013. The firm finds it difficult to predict Netflix’s 2013 results.
Wedbush expects Netflix (NASDAQ:NFLX) to report in-line Q4 results but provide weaker than expected 2012 guidance. The firm expects the company’s guidance to be negatively affected by higher costs to maintain subscribers, increased spending on content, and higher marketing costs. B. Riley expects a resumption in Netflix’s domestic sub growth, a more rational international launch plan, and content spend leverage.
Competitors to Watch: Coinstar, Inc. (NASDAQ:CSTR), DISH Network Corp. (NASDAQ:DISH), Comcast Corporation (NASDAQ:CMCSA), Time Warner Inc. (NYSE:TWX), The Walt Disney Company (NYSE:DIS), Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Google Inc. (NASDAQ:GOOG), and Time Warner Cable Inc. (NYSE:TWC).
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