Netflix, Inc. (NFLX) Shares Tick Higher As Investors Digest 3Q Results


Back in July of this year, Netflix, Inc. (NASDAQ:NFLX) broke the news that it has reached 104 million subscribers. That gives it far and away the largest subscriber base of any global streaming video service. And all those paying customers have boosted Netflix’s revenue to new heights. Today, the company crushed its Q3 subscriber growth targets by adding 5.3 million total.

The online streaming giant posted third-quarter EPS of 29 cents, falling short of the consensus estimate of 32 cent. However, revenue of $2.99 billion came in ahead of the consensus mark of $2.97 billion. Looking ahead, the company sees fourth-quarter revenues of $3.27 a share, above the consensus estimate of $3.15 billion.

“We are growing nicely across the world and are on track to exceed $11 billion in revenue in 2017. Internet entertainment is delighting consumers, and we are staying at the forefront of this once-in-a-generation opportunity,” the company noted in a shareholder letter.

In reaction to the earnings report, Netflix share are up nearly 2% in after-hours trading Monday.

On the ratings front, NFLX stock has been the subject of a number of recent research reports. In a report released today, Aegis Capital analyst Victor Anthony initiated coverage on the stock with a Hold rating and price target of $200, which represents a slight downside potential from current levels. Separately, Rosenblatt Securities’ Alan Gould maintained a Buy rating on the stock and has a price target of $225.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Victor Anthony and Alan Gould have a yearly average return of 14.8% and 8.8% respectively. Anthony has a success rate of 67% and is ranked #149 out of 4697 analysts, while Gould has a success rate of 70% and is ranked #1215.

Netflix operates as an Internet subscription service company, which provides subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. The company operates its business through the following segments: Domestic streaming, International streaming and Domestic DVD. Netflix obtains content from various studios and other content providers through fixed-fee licenses, revenue sharing agreements and direct purchases. It markets its service through various channels, including online advertising, broad-based media, such as television and radio, as well as various partnerships.