Netflix (NFLX) Post Strong Q3, International Driving Upside - Needham & Company

October 22, 2013 7:54 AM EDT
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Price: $138.60 +0.14%

Rating Summary:
    33 Buy, 23 Hold, 9 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company analyst Laura Martin reiterated a Buy rating and $425 price target on Netflix (NASDAQ: NFLX) following Q2 results.

The 3 most important take-aways from 3Q13 earnings call, according to the analyst, included:

  • 4Q13 EPS guidance was raised to $0.47-0.73, well above the $0.46 consensus. We raise our estimate to $0.62 (from $0.55).
  • International subs were 8% above estimates, which suggests faster breakeven and higher RICs than previously anticipated, since programming costs are fixed.
  • Margins hit guidance, up 400% y/y, even after an extra $27mm of extra amortization costs, suggesting margin expansion is ahead of schedule.

    For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.

    Shares of Netflix closed at $354.99 yesterday.

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