Wedbush Cuts Estimates on Netflix (NFLX), Keeps Lowest Rating
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Price: $78.16 -0.1%
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush lowered estimates and reiterated their Underperform rating and $110 price target on Netflix (NASDAQ: NFLX) after the company lowered domestic subscriber guidance.
The firm said the lower guidance reflects customer disinterest and displeasure with the recent price changes.
"We believe that the lowered expectations reflect a degree of customer disinterest in streaming only (which features improving content that is far from spectacular) and DVD only (for low volume renters, Coinstar's (Nasdaq: CSTR) Redbox still presents a better value option), as well as displeasure with Netflix's subscription plan changes, which became effective beginning on September 1."
The firm lowered Q3 estimates for revenue to $820 million from $827 million, for subs to 25.7 million from 26.6 million, and for EPS to $0.96 from $0.99.
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $208.71 yesterday.
The firm said the lower guidance reflects customer disinterest and displeasure with the recent price changes.
"We believe that the lowered expectations reflect a degree of customer disinterest in streaming only (which features improving content that is far from spectacular) and DVD only (for low volume renters, Coinstar's (Nasdaq: CSTR) Redbox still presents a better value option), as well as displeasure with Netflix's subscription plan changes, which became effective beginning on September 1."
The firm lowered Q3 estimates for revenue to $820 million from $827 million, for subs to 25.7 million from 26.6 million, and for EPS to $0.96 from $0.99.
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $208.71 yesterday.
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