Netflix (NFLX): Earnings Whisper?

Netflix, Inc. (NFLX) is set to report second-quarter fiscal year 2015 results after the market close on Wednesday. Expectations point towards EPS of $0.28 and revenue of $1.65 billion, according to analysts surveyed by FactSet. That would be $0.10 below the $0.38 per share posted last quarter and $0.87 below the $1.15 posted in the 2Q/14. Revs however, are projected to be $310 million, or 23.10% higher than the $1.34 billion posted in the same quarter of 2014. Netflix has delivered positive earnings surprises in the last four quarters, while beating FactSet’s expectations in 7 of the last 10 Q’s.

In late June, the Los Gatos, Calif.-based company announced that its board of directors had approved a 7:1 stock split after increasing its share authorization from 170 million to 5 billion (including preferred stock). Also back in January, Netflix announced plans to expand its footprint in as many as 200 countries over a period of two years.

Shares of Netflix ended last week at $680.60. The online movie rental subscription services firm is currently priced at 177.38x this year’s forecasted earnings compared to the industry’s 18.59x earnings multiple. The company’s current year and next year EPS growth estimates stand at (64.50%) and 136.60% compared to the industry growth rates of 24.70% and 22.80%, respectively. NFLX has a t-12 price/sales ratio of 6.99. EPS for the same period registers at 3.84. The median consensus price target for the $41.26 billion market cap company is $671.50. The 52-week trading range is $315.54 to $706.24.

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