Netflix, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Netflix, Inc. (NASDAQ:NFLX) will unveil its latest earnings on Monday, October 24, 2011. 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 net income of 96 cents per share, a rise of 37.1% 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 $1.09. Between one and three months ago, the average estimate moved down. It also has dropped from 99 cents during the last month. Analysts are projecting profit to rise by 51.7% versus last year to $4.49.

Past Earnings Performance: Last quarter, the company reported profit of $1.26 per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 46.6% in revenue from the year-earlier quarter to $811.1 million.

Analyst Ratings: Analysts seem relatively indifferent about Netflix with 15 of 27 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 56.7% to $68.2 million ($1.26 a share) from $43.5 million (80 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 51.7% to $788.6 million from $519.8 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 40.5%, with the biggest boost coming in the most recent 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 86.6% in the first quarter and 52.3% in the fourth quarter of the last fiscal year.

Competitors to Watch: Amazon.com Inc. (NASDAQ:AMZN), Dish Networks (NASDAQ:DISH), Best Buy (NYSE:BBY), Comcast (NASDAQ:CMCSA), AOL (NYSE:AOL), Time Warner (NYSE:TWX), Time Warner Cable (NYSE:TWC), DirecTV (NASDAQ:DTV), TiVo (NASDAQ:TIVO), Echostar (NASDAQ:SATS), Coinstar, Inc. (NASDAQ:CSTR), Apple Inc. (NASDAQ:AAPL) and IMAX (NASDAQ:IMAX).

Stock Price Performance: During July 25, 2011 to October 18, 2011, the stock price had fallen $169.79 (-60.3%) from $281.53 to $111.74. 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. Shares are down $63.96 (-36.4%) year to date.

(Source: Xignite Financials)

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