Netflix Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Netflix, Inc. (NYSE:NFLX) will unveil its latest earnings on Wednesday, January 25, 2012. Netflix provides subscription service, streaming movies, and TV episodes over the Internet.

Netflix, Inc. Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 54 cents per share, a decline of 37.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.11. Between one and three months ago, the average estimate moved down. It also has dropped from 56 cents during the last month. Analysts are projecting profit to rise by 37.5% versus last year to $4.07.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 21 cents, reporting net income of $1.16 per share against a mean estimate of profit of 95 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $857.6 million in revenue this quarter, a rise of 43.9% from the year ago quarter. Analysts are forecasting total revenue of $3.19 billion for the year, a rise of 47.7% from last year’s revenue of $2.16 billion.

Analyst Ratings: Analysts seem relatively indifferent about Netflix with 16 of 30 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 64.5% to $62.5 million ($1.16 a share) from $38 million (70 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 48.6% to $821.8 million from $553.2 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 45%, with the biggest boost coming in the second quarter when revenue rose 51.7% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 56.7% in the second quarter and 86.6% in the first quarter.

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).

Stock Price Performance: During December 19, 2011 to January 19, 2012, the stock price had risen $36.31 (54.1%) from $67.15 to $103.46. The stock price saw one of its best stretches over the last year between March 18, 2011 and March 30, 2011 when shares rose for nine-straight days, rising 13.6% (+$28.55) over that span. It saw one of its worst periods between September 12, 2011 and September 21, 2011 when shares fell for eight-straight days, falling 38.8% (-$81.55) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com