Here s our look at Netflix ahead of its earnings report this afternoon, and fresh off its 7-for-1 stock split.
The number of subscribers always has a starring role when the Los Gatos entertainment provider reports earnings. The numbers are key in gauging whether the company s two main initiatives, original content and international expansion, are working out. This time around, investors and other interested observers will see if the company s projections for the second quarter were correct: 600,000 new subscribers in the U.S., for a total of 42 million, and 1.9 million new subscribers overseas, for a sum of 22.8 million.
It s too early to tell how Netflix is faring amid growing competition — but look for how this might affect the company s subscriber numbers in the next several quarters. From TV networks to cable providers, it seems like everyone is entering the streaming video market already populated by Netflix, Amazon and Hulu. Comcast this week unveiled an add-on streaming service. Showtime launched a streaming service last week, following rival HBO s launch of a similar service, HBO Now, in April.
Analysts surveyed by FactSet expect Netflix to post revenue of 28 cents a share on $1.65 billion in revenue. (Post-split earnings-per-share expectation is 4 cents.) That compares with the 38 cents a share Netflix earned in the first quarter.
Netflix shares closed at $707.61 Tuesday. They ve been on a tear, with analysts recently raising price targets on optimism based on the time people are spending watching Netflix. Today, post-split, the company s shares are trading down about 1.5 percent to about $98.90.
Photo from Associated Press archives
