Netflix, Inc. (NASDAQ:NFLX) is set to post second-quarter results on Monday post trading hours, and analysts are upbeat on the earnings. Analysts expect the online video streaming company to post earnings per share growth of 136% on 25% revenue growth.  The company’s dark Comedy show Orange is the New Black is seen as a major contributor to the revenue growth.

netflix Inc. (NFLX)

Many catalysts to take growth forward

Analysts polled by Thomson Reuters are expecting $1.16 earnings per share and revenue is estimated at $1.334 billion. The stock rallied approximately 20% in 2014 reaching an all-time high of 475.87 on July 2.

Netflix Inc.’s contribution margin is expected to be better both sequentially and year over year in local, as well as international markets. Subscriber base expansion has made the fixed content costs spread over the large revenue base, which will take the margins higher.

In the United States, the monthly fee has been increased by $1 along with the international price revision. The new pricing structure will affect only the new subscribers, whereas the old customers will continue with the same structure for two more years. According to the analysts, Netflix will increase its annual incremental revenues in the United States by $500 million by 2017. At present, the company has a subscriber base of 13.6 million in Europe, Canada and Latin America. Also, the company has expanded its business in Europe, which will further drive the international business stronger.

Analysts positive on Netflix  

Goldman Sachs analysts are expecting an increase in the domestic streaming subscribers by atleast 22% in the second-quarter and international subscribers are expected to rise 77%. Also, the analysts are projecting Netflix to garner around net 600,000 domestic and 1 million international streaming subscribers, in the second-quarter, which is marginally above the guidance. According to these analysts, Orange is the New Black subscriber growth has fuelled the overall sentiments.

Similarly, JP Morgan analyst Doug Anmuth said that for the second-quarter domestic streaming will add 522,000 subscribers and company will add more subscribers in the United States in 2014 compared to 2013.

“However, there is likely greater near-term upside in international streaming, where we project 938,000 net adds in Q2 and 6.5 million for the full year,” Anmuth said.

Analyst Michael Pachter from Wedbush is expecting second-quarter domestic streaming subscriber net adds of 520,000 in line with the guidance, a decline from 630,000 from the previous year due to the negative impact of seasonality.