Netflix Earnings Cheat Sheet: Fifth Straight Quarter of Double-Digit Revenue Growth

S&P 500 (NYSE:SPY) component Netflix, Inc. (NFLX) reported higher profit for the first quarter as revenue showed growth. Netflix, Inc. provides subscription service streaming movies and TV episodes over the Internet and by mail.

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Netflix Earnings Cheat Sheet for the First Quarter

Results: Net income for Netflix, Inc. rose to $60.2 million ($1.11/share) vs. $32.3 million (59 cents/share) in the same quarter a year earlier. A rise of 86.6% from the year earlier quarter.

Revenue: Rose 45.6% to $718.6 million YoY.

Actual vs. Wall St. Expectations: NFLX beat the mean analyst estimate of $1.08/share. Estimates ranged from $1.02 per share to $1.17 per share.

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 32.6%, with the biggest boost coming in the most recent quarter when revenue rose 45.6% from the year earlier quarter.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 52.3% and in the third quarter of the last fiscal year, the figure rose 26%.

Gross margins grew 1.2 percentage points to 39%. The growth seemed to be driven by increased revenue, as the figure rose 45.6% from the year earlier quarter while costs rose 42.6%.

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).

Today’s Performance: Shares of NFLX are trading at $240 as of April 25, 2011 at 4:51 PM ET, down 4.6% from the today’s closing price of $251.67.


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