Net income per share will probably rise to US$0.63 from US$0.40 in the year-earlier quarter, according to estimates from Zacks and FactSet. The company reports earnings results after the market close.
The company in January forecast 6.35 million net subscriber additions for the first quarter, with 1.45 million from the US and 4.9 million internationally. Investors also will be focused on Netflix net subscriber additions, as well as the firm’s operating margins, which it expects to increase as much as 10%.
Netflix has changed the industry in a “profound way,” giving it a “significant” lead and making it difficult for traditional media companies to catch up, thefly.com cited Deutche Bank analyst Bryan Kraft as saying. Kraft increased his rating to Buy from Hold and raised his price target for the stock to US$350 from US$240, it said.
The California-based company has said its investment into original programming in recent years is paying off, culminating in a record 8.3 million subscribers being added in the three months to the end of December.
Viewers were drawn in by new seasons of shows including The Crown and Stranger Things – with the latter cementing its place as a “global phenomenon” following the release of its second series.
The company beat analyst expectations for subscriber growth in the fourth quarter, adding more than 8 million users, compared with expectations of 6 million, according to FactSet.