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In particular, the company's profits beat Zacon's consensus estimates over the past four quarters, with the average positive surprise being 23.9%.
Netflix had 148.86 million subscribers worldwide by the end of the first quarter. Management expects to acquire 0.3 million and 4.7 million additional subscribers in the national and international markets, respectively, in the next quarter.
In addition, Netflix expects earnings per share of 55 cents per share in the second quarter of 2019. Zacks' consensus estimate of earnings has been maintained at 56 cents over the last 30 days.
"data-reactid =" 16 ">Netflix NFLX is expected to release its results for the second quarter of 2019 on July 17th.
In particular, the company's profits beat Zacon's consensus estimates over the past four quarters, with the average positive surprise being 23.9%.
Netflix had 148.86 million subscribers worldwide by the end of the first quarter. Management expects to acquire 0.3 million and 4.7 million additional subscribers in the national and international markets, respectively, in the next quarter.
In addition, Netflix expects earnings per share of 55 cents per share in the second quarter of 2019. Zacks' consensus estimate of earnings has been maintained at 56 cents over the last 30 days.
Netflix, Inc. Price and EPS Surprise
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Let's see how things stand for this announcement.
Content strength: key catalyst
Netflix has returned 41.8% since the beginning of the year, compared with 17.8% for the S 500. This outperformance can be attributed to the increase in the number of subscribers of the company.
The company's strong content portfolio, including originals (movies and television series), has been a major growth driver. In addition, the company's efforts to offer content tailored to different genres have been a key enabler in user motivation.
In addition, the success of Murder Mystery certainly confirms the evolution of Netflix as a big movie studio. In addition, the growing involvement of well-known Hollywood stars makes movies and shows on the platform more appealing.
These positive trends should drive the sales of the quarter to report. Netflix expects a total business turnover of $ 4.93 billion, including DVD business, up 32% sequentially, excluding the currency's adverse effect.
Difficult competition can play at Spoilsport
However, stiff competition from DIS Hulu, YouTube, T HBO, Amazon Prime, AT & T, and Amazon will make it difficult for Netflix to maintain the growth rate in subscriber numbers in the second quarter.
Notably, HBO aired the last season of its hugely popular series Game of thrones during the quarter (April 14 to May 19). Although Netflix considers the video game Fortnite As a major competitor, HBO's strong content portfolio is becoming a major threat.
Focus on comments on content expenses
Netflix's commentary on growing competition in the streaming space and spending on original content will be closely followed by investors in this call for profit.
Apple and Disney have provided details on their upcoming streaming companies, Apple TV + and Disney + in the coming quarter. More recently, AT & T has announced HBO Next, its next streaming service.
In addition, Netflix plans to curb spending on original content, especially for large-budget projects, which lack audience. This strategy should reduce the rate of cash consumption.
In particular, Netflix's streaming content obligations were $ 18.9 billion at the end of the first quarter.
What our model says
According to the Zacks model, a company with a ranking Zacks rank 1 (strong buy), 2 (buy) or 3 (pending) has a good chance of exceeding estimates if it also has a positive PSE of its income. It is best to avoid ranked stock (Zacks Rank # 4 or # 5).
Netflix carries the rank 3 of Zacks and its profit ESP is + 5.99%. You can discover the best stocks to buy or sell before they are declared with our earnings ESP filter.
Another stock to consider
Here is another title that you can consider because our proven model shows that it has the right combination of items to show a profit higher this quarter.
Comcast CMCSA has a profit EPS of + 2.12% and a rank of Zacks No. 3. The company is about to report its results on July 25th. You can see You will find here the complete list of today's Zacks # 1 stocks."data-reactid =" 29 "> Let's see the evolution of the situation for this announcement.
Content strength: key catalyst
Netflix has reported a return of 41.8% since the beginning of the year, compared to 17.8% for the S & P 500. This outperformance can be attributed to the increase in the number of subscribers of the company.
The company's strong content portfolio, including originals (movies and television series), has been a major growth driver. In addition, the company's efforts to offer content tailored to different genres have been a key enabler in user motivation.
In addition, the success of Murder Mystery certainly confirms the evolution of Netflix as a big movie studio. In addition, the growing involvement of well-known Hollywood stars makes movies and shows on the platform more appealing.
These positive trends should drive the sales of the quarter to report. Netflix expects a total business turnover of $ 4.93 billion, including DVD business, up 32% sequentially, excluding the currency's adverse effect.
Difficult competition can play at Spoilsport
However, stiff competition from DIS Hulu, YouTube, AT & T's T HBO and Amazon Prime will likely prevent Netflix from maintaining the growth rate in subscriber numbers in the second quarter.
Notably, HBO aired the last season of its hugely popular series Game of thrones during the quarter (April 14 to May 19). Although Netflix considers the video game Fortnite As a major competitor, HBO's strong content portfolio is becoming a major threat.
Focus on comments on content expenses
Netflix's commentary on growing competition in the streaming space and spending on original content will be closely followed by investors in this call for profit.
Apple and Disney have provided details on their upcoming streaming companies, Apple TV + and Disney + in the coming quarter. More recently, AT & T has announced HBO Next, its next streaming service.
In addition, Netflix plans to curb spending on original content, especially for large-budget projects, which lack audience. This strategy should reduce the rate of cash consumption.
In particular, Netflix's streaming content obligations were $ 18.9 billion at the end of the first quarter.
What our model says
According to the Zacks model, a company with a ranking Zacks rank 1 (strong buy), 2 (buy) or 3 (pending) has a good chance of exceeding estimates if it also has a positive PSE of its income. It is best to avoid ranked stock (Zacks Rank # 4 or # 5).
Netflix carries the rank 3 of Zacks and its profit ESP is + 5.99%. You can discover the best stocks to buy or sell before they are declared with our earnings ESP filter.
Another stock to consider
Here is another title that you can consider because our proven model shows that it has the right combination of items to show a profit higher this quarter.
Comcast CMCSA has a profit EPS of + 2.12% and a rank of Zacks No. 3. The company is about to report its results on July 25th. You can see You will find here the complete list of today's Zacks # 1 stocks.
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