Strong Int'l Showing Boosts Netflix (NFLX) in Q4; Cowen Lifts PT to $155
Cowen and Company lifts its price target on Outperform-rated Netflix (Nasdaq: NFLX) from $150 up to $155 following solid Q4 results issued late Tuesday.
Analyst John Blackledge summarized: NFLX reported solid 4Q15 results, as Int’l net adds crushed consensus (~500,000 beat, 200,000 beat vs. our est.) and US paid sub net adds were slightly better than guide, while revenue and EPS were above forecast. NFLX’s 1Q16 guide was also positive, led by strong Int’l net adds (+4.35 million vs. our 4 million and street at 2.9 million).
On Netflix's Q1 outlook: NFLX 1Q16 US sub guide was a bit lighter than expected, offset by significantly stronger Int'l sub guidance, with US net adds of 1.75M vs. our 1.9 million net add estimate and consensus of 2.1MM, while Int'l net adds of 4.35 million (vs. 2.6 million in 1Q15) was above our 4.0 million estimate, and well above consensus 2.9 million estimate. NFLX mgmt. is confident that the upcoming slate of 600+ hours of Original programming in ’16 vs 450 hours in ’15 will drive further sub growth. Also, in 1Q15 NFLX came in well above mgmt.’s US sub guide with 2.3 million net adds vs. 1.8 million guide.
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