Netflix: Here’s What Investors Need to Know Before Earnings

Netflix (NASDAQ:NFLX) will report earnings after markets close on Monday, July 22nd. Netflix Inc. is an online movie rental service. The Company ships DVDs with no due dates or late fees, directly to the subscriber’s address. Netflix also provides background information on DVD releases, including critic reviews, member reviews and ratings, and personalized movie recommendations.

Here is your Cheat Sheet to Netflix Earnings:

Earnings Expectations: Analysts expect earnings of $0.40 per share on revenues of $1.07 billion. Currently, the company’s P/E ratio stands at 632.30.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.37 to a profit $0.45. For the current year, the average estimate is a profit of $1.39, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Netflix has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,365 1,670 2,163 3,205 3,609
Diluted EPS ($) 1.32 1.98 2.96 4.26 0.29

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 889.16 905.09 945.24 1,023.96
Diluted EPS ($) 0.11 0.13 0.13 0.05

Past Performance:
Netflix has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)