3 Things to Watch When Netflix Reports Third Quarter Earnings on Wednesday

Netflix (NFLX) is set to report third quarter earnings after the closing bell on Wednesday, October 14. Analysts expect earnings per share of $0.08 on sales of $1.75 billion. Tuna Amobi, an equity analyst at S&P Capital IQ, who maintains a BUY rating on Netflix, will be looking out for numbers on the company’s user growth. During second quarter, the company added 3.3 million new streaming subscribers, compared to 1.7 million in first quarter. Amobi expects that growth to continue. 'The company [is expecting] 3.6 million global net additions, but much like the second quarter, those Q3 targets could be somewhat conservative,' he said. 'We think the company is well-positioned to continue to benefit from exponential growth in streaming hours and more importantly international expansion, as they just launched in Japan.'