Netflix Ups Revenue, Subscribers
A pair of Wall Street firms predict strong results for Netflix, which streams TV shows and movies, when the company reports results for the January-March period Monday. Credit Suisse said it expects Netflix to post an addition of 1.8 million net domestic subscribers for its online service, close to the high end of Netflix guidance.
J.P. Morgan said the company would report it has 23.4 million streaming domestic subscribers.
Credit Suisse believes Netflix is making strides in putting behind it the damage suffered after a pricing change last year, writing that “the brand continues to recover.”
The firm estimates revenue for the quarter will come in at $824 million, up 17% from the same period the year before, as subscribers are paying more on average. Netflix is predicted to take an operating loss as it expands into the U.K. and Latin America.
Netflix shares were trading in the $106 range midday Friday and Credit Suisse projects a rise to $140. J.P. Morgan, however, was less than bullish, with a price target of $95.
J.P. Morgan warned that Netflix’s streaming rights with Starz have expired and that could impact the company moving forward. Other headwinds include Amazon’s expansion in the online streaming business, RedBox and Verizon moving in and Comcast’s TV Everywhere efforts.