Post Earnings Coverage as Netflix Revenue Soared 35%; Earnings Jumped Six Times
Upcoming AWS Coverage on Shaw Communications Post-Earnings Results
LONDON, UK / ACCESSWIRE / April 20, 2017 / Active Wall St. announces its post-earnings coverage on Netflix, Inc. (NASDAQ: NFLX). The Company reported its first quarter fiscal 2017 results on April 17, 2017. The streaming service provider surpassed earnings expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Netflix's competitors within the CATV Systems space, Shaw Communications Inc. (NYSE: SJR), released its consolidated results for Q2 (ending February 28, 2017) the morning of Wednesday, April 12, 2017. AWS will be initiating a research report on Shaw Communications in the coming days.
Today, AWS is promoting its earnings coverage on NFLX; touching on SJR. Get our free coverage by signing up to: http://www.activewallst.com/register/.
Earnings Reviewed
For the three months ended March 31, 2017, Netflix's revenue rose 35% to $2.64 billion compared to revenue of $2.48 billion in Q1 FY16. The Company's revenue numbers missed consensus estimates of $2.641 billion. The Company's International Streaming revenues surged 60.5% on a y-o-y basis to $1.05 billion driven by an increase in paid members. Domestic Streaming revenues improved 26.6% to $1.47 billion compared to the year ago same period.
For Q1 FY17, Netflix added a total of 4.95 million net new streaming video subscribers worldwide. The Company's subscription numbers came in below its own guidance of adding 5.2 million streaming subscribers in the period. Netflix ended the reported quarter with 98.75 million streaming subscribers worldwide. The Company's paid streaming members totaled 94.36 million, up from 77.71 million in Q1 FY16.
For Q1 FY17, Netflix's Domestic Streaming segment subscriber base totaled 50.85 million compared to 46.97 million in the year-ago comparable quarter. Paid members increased to 49.38 million from 45.71 million in the same period. For the International Streaming segment, Netflix reported 47.89 million members compared with 34.53 million in the prior year's comparable quarter.
For Q1 FY17, Netflix reported earnings of $0.40 per share excluding items compared to earnings of $0.06 per share in the year earlier comparable quarter. Earnings numbers surpassed market estimates of $0.38 per share.
Balance Sheet
As of March 31, 2017, Netflix had $1.341 billion in cash and cash equivalents compared with $1.734 billion as of December 31, 2016. Free cash flow in Q1 FY17 was -$423 million vs. -$261 million in the year ago quarter and an improvement from -$639 million in Q4 FY16. The Company continues to plan to have around $2 billion in negative free cash flow for FY17.
Outlook
For Q2 FY17, Netflix is forecasting to add 3.2 million new subscribers worldwide. The Company is expecting earnings of $0.15 per share. Total streaming revenues are expected to be $2.640 billion while total revenue including DVD business is expected to be $2.755 billion. Netflix expects to add 0.60 million subscribers in the domestic streaming segment and 2.60 million subscribers in the international segment.
Stock Performance
On Wednesday, April 19, 2017, the stock closed the trading session at $139.76, falling 2.51% from its previous closing price of $143.36. A total volume of 12.38 million shares have exchanged hands, which was higher than the 3-month average volume of 5.72 million shares. Netflix's stock price rallied 4.88% in the last three months, 40.04% in the past six months, and 48.15% in the previous twelve months. At Tuesday's closing price, the stock's net capitalization stands at $60.15 billion.
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