Netflix, Inc. Second Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Netflix, Inc. (NASDAQ:NFLX) will unveil its latest earnings on Monday, July 25, 2011. Netflix, Inc. provides subscription service streaming movies and TV episodes over the Internet and by mail. Netflix: Will These Obstacles Interfere with the White Hot Stock?>>

Netflix, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.11 per share, a rise of 38.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.19. Between one and three months ago, the average estimate moved down, but it has been unchanged at $1.11 during the last month. For the year, analysts are projecting net income of $4.53 per share, a rise of 53% from last year.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of $1.11 per share against a mean estimate of net income of $1.07, and the quarter before, the company exceeded forecasts by 16 cents with profit of 87 cents versus a mean estimate of net income of 71 cents.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $790.5 million in revenue this quarter, a rise of 52.1% from the year ago quarter. Analysts are forecasting total revenue of $3.26 billion for the year, a rise of 50.9% from last year’s revenue of $2.16 billion.

Analyst Ratings: Analysts are bullish on Netflix as 12 analysts rate it as a buy, nine rate it as a sell and 11 rate it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 34.4%, with the biggest boost coming in the most recent quarter when revenue rose 45.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 86.6% while it rose 52.3% in the fourth quarter of the last fiscal year and 26% in the third quarter of the last fiscal year.

Competitors to Watch: Coinstar, Inc. (NASDAQ:CSTR), DISH Network Corp. (NASDAQ:DISH), Comcast Corporation (NASDAQ:CMCSA), Time Warner Inc. (NYSE:TWX), The Walt Disney Company (NYSE:DIS), Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Cablevision (NYSE:CVS), Google Inc. (NASDAQ:GOOG), DirecTV (NASDAQ:DTV), CBS (NYSE:CBS), TiVo (NASDAQ:TIVO), AT&T (NYSE:T), Verizon (NYSE:VZ), Sprint (NYSE:S) and Time Warner Cable Inc. (NYSE:TWC).

Stock Price Performance: During June 20, 2011 to July 19, 2011, the stock price had risen $41.66 (17%) from $245.63 to $287.29. The stock price saw one of its best stretches over the last year between March 18, 2011 and March 30, 2011 when shares rose for nine-straight days, rising 13.6% (+$28.55) over that span. It saw one of its worst periods between February 14, 2011 and February 23, 2011 when shares fell for seven-straight days, falling 14.7% (-$36.35) over that span. Shares are up $111.59 (+63.5%) year to date.

(Source: Xignite Financials)

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