Wedbush analyst Michael Pachter weighed in with a few insights on Netflix, Inc. (NASDAQ:NFLX), as the company is scheduled to report its first-quarter earnings results after the market close on Wednesday, April 15. The analyst reiterated an Underperform rating on the stock, with a price target of $245, which reflects a potential downside of 43% from last closing price.
Pachter noted, “We expect Q1 upside from season 3 of House of Cards, international expansion, and cost control. Our estimates are for revenue of $1.58 billion, EPS of $0.64, domestic streaming net adds of 2.00 million subs and international net adds of 2.30 million subs, versus consensus of $1.57 billion and $0.70, and guidance of 1.80 million, 2.25 million, and $0.60, respectively.”
Furthermore, “We expect conservative Q2 guidance that Netflix will once again exceed due to season 3 of Orange Is the New Black and cost control. We expect domestic streaming net adds slightly below last year’s 0.57 million subs, due to last year’s price increase. We expect EPS guidance near consensus of $0.93, with spending weighted to 2H.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Pachter has a total average return of 1.6% and a 47.9% success rate. Pachter has a -35.0% average return when recommending NFLX, and is ranked #1606 out of 3569 analysts.