Netflix, Inc. (NASDAQ:NFLX) will report its fiscal second quarter results on Monday, July 21 after the market closes. Ahead of the earnings, Robert W. Baird & Co analysts William V. Power, Steven J. Beckert and Andrew T. Flis have raised their price target on the stock from $470 to $505. The research firm reiterates its Outperform rating on the stock.

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Customer survey shows solid growth momentum for Netflix

Baird conducted a consumer survey in the U.S. and U.K in the last week of June. In the United States, 32% respondents said they were Netflix subscribers, up from 31% in March. The second quarter gains seem modest on a quarterly average basis, reflecting a typical seasonality. Robert W. Baird expects Netflix to add 660,000 new subscribers in the June quarter.

Netflix U.S.

In the U.K., the research firm’s June survey points to 18% penetration, which indicates 18% of the total broadband connected homes. Assuming the data is correct, it implies that the Internet streaming company has about 4.5 million U.K. subscribers out of the total 25.7 million broadband connected homes. Solid growth in the U.K., one of the most competitive markets, bodes well for the upcoming launches in Germany and France.

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Baird analysts expect Netflix to add one million new streaming subscribers in the second quarter, up from 683,000 in the corresponding quarter last year. The U.S. market should benefit from the launch of the second season of Orange is the new Black, though survey suggests that the seasonality will hold. For the full year, Baird expects Netflix to add six million subscribers in the U.S. and 7.1 million in International markets.

Netflix Q2 earnings preview

Analysts forecast Netflix’s second quarter revenues to come in at $1.33 billion, up from $1.07 billion last year. U.S. revenues are expected to rise 24.1% while international sales are likely to surge 84% YoY. Second quarter net income is expected at $72.2 million or $1.17 per share. Q2 GAAP margins are expected to increase from 29.5% to 32.4%, mainly due to improvements in the international markets.

Fort the full-year 2014, Baird forecasts revenues of $5.4 billion with net income of $213.9 million and EPS of $3.47. Full year margins are expected to improve from 29.5% to 30.2%. Netflix shares rose 0.15% in pre-market trading Thursday to $443.66.