Dougherty Cuts Price Target & Estimates on Netflix (NFLX), Sees Q3 Results Well Below Consensus
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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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Dougherty & Co is reaffirming its Neutral rating on shares of Netflix (NASDAQ: NFLX) while cutting its price target from $212 to $175.
The firm notes that current times are very difficult for the company as they try to figure out the next direction for the company. Netflix's recent decision not to break up the company was viewed as a positive by shareholders while its lower subscriber guidance caused share to drop substantially on multiple days.
For the third quarter, Dougherty & Co is forecasting $805.1 million in revenue with EPS of $0.86 and 25.8 million subscribers, well below the consensus of $811.3 million in revenue and EPS of $0.94.
Dougherty & Co is cutting its FY11 and FY12 EPS estimates from $4.10 and $6.40 to $4.09 and $6.30. Revenue estimates for the two years were lowered from $3.29 billion and $4.84 billion to $3.23 billion and $4.43 billion.
An analyst at Doughterty comments, "We believe Netflix is building a powerful business as a next-generation pay-tv network. The company has scale, global reach and continues to outpace the competition. However, the near-term is clouded by higher than anticipated churn, a situation, which is likely to negatively impact the fourth quarter as well. Despite that fact that the sharp sell-off in the shares makes for a more reasonable entry point, we want to see the Q3 report and Q4 guidance before revisiting our rating on the stock."
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $113.62 yesterday.
The firm notes that current times are very difficult for the company as they try to figure out the next direction for the company. Netflix's recent decision not to break up the company was viewed as a positive by shareholders while its lower subscriber guidance caused share to drop substantially on multiple days.
For the third quarter, Dougherty & Co is forecasting $805.1 million in revenue with EPS of $0.86 and 25.8 million subscribers, well below the consensus of $811.3 million in revenue and EPS of $0.94.
Dougherty & Co is cutting its FY11 and FY12 EPS estimates from $4.10 and $6.40 to $4.09 and $6.30. Revenue estimates for the two years were lowered from $3.29 billion and $4.84 billion to $3.23 billion and $4.43 billion.
An analyst at Doughterty comments, "We believe Netflix is building a powerful business as a next-generation pay-tv network. The company has scale, global reach and continues to outpace the competition. However, the near-term is clouded by higher than anticipated churn, a situation, which is likely to negatively impact the fourth quarter as well. Despite that fact that the sharp sell-off in the shares makes for a more reasonable entry point, we want to see the Q3 report and Q4 guidance before revisiting our rating on the stock."
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $113.62 yesterday.
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