Here come Netflix earnings: Investors will see if the stock's 60 percent rally this year is justified
Netflix reports first-quarter earnings after the bell.
The streaming company has relied on international growth and heavy investments in original content to drive subscriptions
Netflix NFLX will report first-quarter earnings after the bell on Monday. The company has a chance to show Wall Street whether it's deserved the optimistic sentiment that pushed the stock up almost 8 percent last week and 60 percent this year.
What analysts expect
- Earnings per share (EPS): 64 cents expected by a Thomson Reuters consensus estimate
- Revenue: $3.69 billion expected by a Thomson Reuters consensus estimate
- Total streaming net adds: 6.5 million expected by a StreetAccount consensus estimate
- Domestic streaming net adds: 1.48 million expected by a StreetAccount estimate
- International streaming net adds: 5.02 million expected by a StreetAccount estimate
In January , Netflix said it expected $3.69 billion in revenue in the quarter, and EPS of 63 cents, adding 6.35 million new customers in its streaming business.
Guidance for Q2
- Forward guidance on Q2 EPS: 65 cents per share expected by a Thomson Reuters consensus estimate
- Forward guidance on Q2 revenue: $3.89 billion expected by a Thomson Reuters consensus estimate
- Forward guidance on net adds: 5.24 million (974,000 domestic and 4.27 million international) expected by StreetAccount
Stepping up to challenges from Disney and Amazon
Netflix has relied on international growth and heavy investments in original content to drive subscriptions — and Monday's results will provide an update on their effectiveness. The company has said that it expects to grow to 60 million to 90 million members in the U.S. over time, and that it would spend $8 billion on content and $2 billion on marketing this year.
Netflix faces increasing competition from Amazon and Disney, which have their own offerings, as well as traditional media companies and technology companies like Apple. At the same time, Netflix is expanding into cable bundles and recently announced a new offering with Comcast .
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