FY2020 EPS Estimates for Netflix, Inc. Decreased by B. Riley (NFLX)

Daniel Fowler
October 20, 2018

In an effort to provide more consistently accurate subscriber numbers moving forward, Netflix will stop reporting total memberships and focus instead on paid memberships in Q4, eliminating the fluctuations caused by members who abandon the service at the end of the one-month free trial period.

Shares of Netflix (NFLX) skyrocket almost 10% in pre-market trading Wednesday after the streaming giant delivered third-quarter financial results that crushed Wall Street's expectations in an upside surprise. The stock still remains below its record high of $423.21 in June, just before the subscriber-growth scare Netflix announced in July. Netflix shares have risen more than 70 percent so far this year.

Netflix (NASDAQ:NFLX) last posted its earnings results on Tuesday, October 16th.

India is already one of the biggest markets for YouTube, a chief competitor, and holds great potential for Netflix. Netflix added 1.09 million subscribers in the USA, and 5.87 million internationally, bringing the total number of subscribers to 137 million.

The video-streaming service is now the most expensive in India, with monthly subscription plans starting at Rs 500, more than double of its rivals in India.

Along with beating its subscriber estimates, Netflix also grew its streaming revenues by 36% year over year to about $3.9 billion. Netflix is trying to slough off a subscriber growth slump that is causing some analysts from Goldman Sachs and Raymond James to slash their 12-month price targets for the stock. The company's stock had a trading volume of 20,123,800 shares, compared to its average volume of 10,850,155.

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"We expect solid 3Q18 results, led in part by Netflix adding a record number of Originals programming hours", Blackledge wrote. Nikko Asset Management Americas Inc.'s holdings in Netflix were worth $9,930,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

The company exceeded forecasts in both US and global markets but the bulk of the new subscribers came from outside the United States, where the company has been investing aggressively.

Netflix (NASDAQ:NFLX) had its price objective lifted by investment analysts at BMO Capital Markets from $400.00 to $440.00 in a research note issued to investors on Wednesday.

Netflix shares typically fluctuate widely after earnings, and this quarter was no exception.

Revenue: $4 billion. Analysts were expecting $4 billion, according to Bloomberg. During the same quarter a year ago, the firm earned $0.15 EPS.

Netflix being synonymous for content streaming looks set to continue for the foreseeable future after its latest earnings report for Q3 of this year.

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