Netflix, Inc. First Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Netflix, Inc. (NYSE:NFLX) will unveil its latest earnings on Monday, April 23, 2012. Netflix provides subscription service, streaming movies, and TV episodes over the Internet.

Netflix, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 27 cents per share, a swing from profit of $1.11 in the year-earlier quarter. During the past three months, the average estimate has moved down from a loss of 21 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 27 cents during the last month. For the year, analysts are projecting a loss of 32 cents per share, a swing from net income of $4.26 last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 18 cents, reporting profit of 73 cents per share against a mean estimate of net income of 55 cents per share.

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Wall St. Revenue Expectations: Analysts predict a rise of 21% in revenue from the year-earlier quarter to $869.3 million.

Analyst Ratings: Analysts seem relatively indifferent about Netflix with 18 of 30 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 25.2% to $35.2 million (63 cents a share) from $47.1 million (87 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 46.9% to $875.6 million from $595.9 million.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 48.2% over the last four quarters.

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 86.6% in the first quarter of the last fiscal year, 56.7% in the second quarter of the last fiscal year and 64.5% in the third quarter of the last fiscal year before declining in the fourth quarter of the last fiscal year.

Stock Price Performance: Between February 17, 2012 and April 17, 2012, the stock price had fallen $14.83 (-12.2%), from $121.85 to $107.02. The stock price saw one of its best stretches over the last year between June 30, 2011 and July 8, 2011, when shares rose for six straight days, increasing 12.4% (+$32.45) over that span. It saw one of its worst periods between March 26, 2012 and April 4, 2012 when shares fell for eight straight days, dropping 9.6% (-$11.73) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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