RBC Capital Shares Two Cents on Netflix, Inc. (NFLX) Ahead of 1Q:17 Results


Ahead of Netflix, Inc. (NASDAQ:NFLX) first-quarter results, due after the close of trading on Monday, investors are likely to focus on subscriber additions statistics, a key metric for gauging its success.

RBC Capital analyst Mark Mahaney is looking for domestic streaming subscriber additions of 1.50 million, compared to the Street’s 1.59 million estimate, and international streaming subscriber additions of 3.70 million vs. the Street’s 3.68 million estimate. In addition, the analyst expects total revenue of $2.64 billion and $0.37 in GAAP EPS, right in-line with Street estimates and the company’s EPS guidance.

Mahaney noted, “In terms of the June Quarter, which is aseasonally soft quarter for Netflix, we believe the Street’s outlook forroughly 364K Domestic Sub Ads and 2.09MM International Sub Addsis also reasonable, though the Street’s outlook for only ($23MM) inInternational Losses seems light, especially if Netflix launches/localizesnew International markets.”

As such, Mahaney reiterates an Outperform rating on Netflix shares, with a price target of $175, which implies an upside of 22% from current levels.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Mahaney has a yearly average return of 18.6% and a 72% success rate. Mahaney has a 42.1% average return when recommending NFLX, and is ranked #14 out of 4556 analysts.

Out of the 43 analysts polled in the past 12 months, 27 rate Netflix stock a Buy, 14 rate the stock a Hold and 2 recommend Sell. With a return potential of 6%, the stock’s consensus target price stands at $151.75.

 

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