Netflix, Inc. (NASDAQ:NFLX) is set to report its first-quarter results after closing bell on Monday, and analysts are looking for the company’s results to be at, or above the high end of the company’s guidance. Nonetheless, they continue their bearish stance on the long-term potential of the company.
In a report issued to investors this week, Wedbush analysts said they maintain their Underperform rating and $55 per share price target on shares of Netflix, Inc. (NASDAQ:NFLX). They’re looking for earnings of 22 cents per share on $1.03 billion in revenue, compared to the consensus of 18 cents per share on $1.017 billion in revenue.
They’re also predicting 29.2 million domestic streaming subscribers, which is on the high end of the company’s guidance. The analysts said February’s House of Cards debut and March’s integration with Facebook Inc (NASDAQ:FB) in the U.S. likely pushed the company’s results toward the high end of its guidance.
The analysts said their bearish on Netflix, Inc. (NASDAQ:NFLX) for a few reasons. They believe the company will face some challenges in the second half of this year. In their view, the company will be hurt in the second half of the year because its two most high-profile exclusive series were both released in the first half of the year. They also said the company could continue expanding internationally, which would improve long-term growth but put a pause on near-term profitability.
Wedbush analysts do not believe Netflix, Inc. (NASDAQ:NFLX) will provide guidance for the 2013 fiscal year because in their view, management is “content keeping investors focused on near-term results due to many long-term variables.”
As of the moment of this writing, shares of Netflix, Inc. (NASDAQ:NFLX) had fallen almost 3 percent since opening bell.