Net Streaming Adds, Q2 Guidance Key for Netflix (NFLX) with Q1 Report - Analyst
Cowen and Company maintains its Market Perform rating and $355 price target on Netflix (Nasdaq: NFLX) into the company's Q1 report, which is expected out after markets close Monday.
Analyst John Blackledge sees Q1 revs of $1.26 billion and GAAP EPS of $0.80. Domestic revs are expected to be $993 million with International at $265, up 12.6 percent and 87 percent, respectively.
Blackledge commented, The key metrics for the quarter include U.S. and Int'l net streaming additions for 1Q14 and guidance for 2Q. We forecast 35.67 million US streaming subs or 2.25 million net US streaming adds and right in-line with guidance of 35.67 million. For Int'l streaming subs, we expect 12.58 million or 1.65 million net adds and just ahead of 12.53 million Int'l streaming sub guidance range.
Other points investors will keep an eye on include:
- Further details on the Direct Access deal with Comcast announced in late February. We will be curious if this is a template for future transactions with other cable operators and if our conclusions on cost (minor incremental) are correct;
- Progress on international expansion including possible market entry into France and Germany or other european markets;
- Update on the slate of original content including House of Cards Season 2, which launched in 1Q;
- Pricing and the tracking with the 4-stream $11.99 plan and the trial one-stream $6.99 plan; and
- Finally, we will look for an update on Guidance and how well NFLX is advancing towards our forecast of 39.54MM domestic streaming subscribers (6.125MM net adds).
Shares of Netflix closed at $345.74 yesterday.