What to expect when Netflix releases its first quarter results

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Actions of streaming giant Netflix (NFLX) fell after the company provided disappointing forecasts for the second quarter of the fiscal year, masking sharp increases in the number of subscribers in the first three months of the year. "data-reactid =" 11 "> forecasts for the second quarter of the fiscal year, overshadowing strong subscriber entries for the first three months of the year.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Los Gatos, California company & nbsp;book& nbsp; diluted earnings of 76 per share for a business turnover of $ 4.52 billion for the first quarter of fiscal 2019. According to estimates, the company is expected to achieve adjusted earnings per share of 76 cents per share for a turnover of 4.5 billion USD, according to estimates compiled by Bloomberg. . "Data-reactid =" 12 "> The company based in Los Gatos, California, reported a diluted earnings of 76 per share for a business turnover of $ 4.52 billion for the first quarter of the year. Fiscal year 2019. According to estimates, the company is expected to achieve an adjusted earnings per share of 76 cents per share on a business turnover of $ 4.5 billion, according to estimates compiled by Bloomberg.

Netflix added a total of 9.6 million new subscribers in the first quarter of the year, an increase of 16 per cent over the previous year and the highest quarterly net additions in the company's history. This includes 1.74 million new domestic subscribers and 7.86 million international subscribers.

The consensus forecast was 8.94 million net world additions in the first quarter. Last quarter, the company added 8.8 million paying members worldwide.

However, Netflix has been guiding a slowdown in the pace of new subscriber additions for the second fiscal quarter, which has always been a seasonal quarter in terms of creating new paid subscriptions.

The streaming giant announced 5 million net streamed additions in the second quarter, which is below expectations of 6.09 million new Wall Street subscribers. This represents a decrease of 8% over last year's additions.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Netflix announced in January its largest & nbsp;price increase& nbsp; in the subscription history in the US, which many analysts believe will slow subscriber growth in the second quarter. The company is also facing a series of price increases in Brazil, Mexico and parts of Europe, said in its letter to shareholders. "Data-reactid =" 17 "> In January, Netflix announced its largest price increase in the history of US subscriptions., Which, according to many analysts, would slow growth in the number of new subscribers in the second quarter, and is considering a series of price increases in Brazil, Mexico and parts of Europe, "says the letter to shareholders.

Netflix shares fell 4% to $ 345.00 each at 4:10 pm ET.

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<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The last Netflix results announcement is presented in the form from a host of companies – including Disney (DIS) and Apple (AAPL) – put forward the details of their own streaming services. "Data-reactid =" 40 "> The latest Netflix results announcement was announced as many large companies – including Disney (DIS) and Apple (AAPL) – presented details of their own streaming services.

"Both companies are world-class consumer brands and we are excited to compete. The clear beneficiaries will be content creators and consumers, who will reap the rewards of many companies looking to deliver an outstanding video experience to the public, "Netflix said in its letter to shareholders.

"We do not expect these new entrants to significantly affect our growth, as the shift from linear entertainment to on-demand entertainment is huge and because of the different nature of our content offerings," adds the text.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Netflix shares slid 4.5% on Friday last, while Disney's shares have reached unprecedented heights after it announced that its new Disney + streaming platform would be priced at $ 6.99 per month, or $ 2.00 less than& nbsp; Basic Plan of Netflix. Netflix shares, however, increased the day Apple unveiled its streaming video service called Apple TV +. "Data-reactid =" 43 "> Netflix shares slid 4.5% last Friday, while Disney shares hit record highs after the latter announced The new Disney + streaming platform would cost $ 6.99 per month, or $ 2.00 less than the Netflix Basic Package. However, Netflix's action has increased the day Apple unveiled its video streaming service called Apple TV +.

<p class = "canvas-atom text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "CBS All Access is another competitor.CBS), Hulu, Amazon Prime Video and YouTube TV, along with other AT & T and WarnerMedia offerings (T), NBCUniversal and Discovery (DISCA) on the road. "Data-reactid =" 44 "> Other competitors include CBS All Access (CBS), Hulu, Amazon Prime Video and YouTube TV, as well as other AT & T and WarnerMedia (T) offerings, NBCUniversal and Discovery (DISCA) on the way.

However, the competition concerns could be "exaggerated", said JPMorgan analyst Doug Anmuth, in view of the Netflix occupation and the place left to many major streaming players.

"We expect Disney + to be probably the most competitive broadcast offer for NFLX, but we still do not see it as a major threat to the number of NFLX subscribers given the quality and quantity of NFLX content, "wrote Anmuth in a note on Monday.

"It is important to note that, given the strong secular global evolution towards streaming, we believe that it is possible for many businesses to succeed and that in our opinion, Netflix / Disney + will not be an indifferent choice, "he added.

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