Analysts are expecting the TV and movie streaming services company to post a year over year decline in earnings per share but a rise in revenue for the most recent quarter.
Netflix has been forecast by analysts surveyed by Thomson Reuters to report earnings of 8 cents per share on revenue of $1.75 billion for the September ended period.
Last year, the company reported earnings of 14 cents per share on revenue of $1.41 billion.
Netflix is a Los Gatos, CA-based Internet TV network. The company offers a subscription-based service allowing customers the ability to view new, classic and original TV shows and movies from any device.
Shares of Netflix are up by 1.37% to $111.23 in pre-market trading on Wednesday morning.
Separately, TheStreet Ratings team rates NETFLIX INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NFLX's revenue growth trails the industry average of 33.8%. Since the same quarter one year prior, revenues rose by 22.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for NETFLIX INC is currently very high, coming in at 84.02%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.60% trails the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Internet & Catalog Retail industry and the overall market, NETFLIX INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: NFLX