Netflix, Inc. (NFLX) Q4 Earnings: What Wall Street Expects

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Netflix, Inc. (NASDAQ:NFLX) is scheduled to report its fourth quarter earnings on Wednesday, January 22 after the bell. The company will also hold a conference call at 5:55 PM ET on the same day. The online video streaming service provider has exceeded Wall Street earnings estimates three out of the previous four quarters. Analysts and investors will be watching its subscriber growth rate closely. Netflix, Inc. (NASDAQ:NFLX) was the best performer in the S&P 500 Index in 2013 with a 298% rise in its share prices.

Netflix expected to add 2 million new subscribers

Analysts polled by Thomson Reuters expect Netflix, Inc. (NASDAQ:NFLX) to post $1.17 billion in revenue, up 23.3% from the corresponding quarter last year. Revenue estimates were in the range of $1.11 billion to $1.20 billion. Netflix, Inc. (NASDAQ:NFLX)’s earnings are expected to rise from 13 cents in Q4, 2012 to 66 cents in Q4, 2013. Over the past 60 days, the consensus EPS estimate has inched up by one cent.

Netflix, Inc. (NASDAQ:NFLX) added 1.3 million subscribers during the third quarter. Analysts estimate the Los Gatos-based company to have added 2 million new subscribers in Q4. Netflix, Inc. (NASDAQ:NFLX) expects its domestic subscriber base to come between 32.7 to 33.5 million members. Of them, 31.1-31.8 million would be paid members. Its international membership is estimated to reach 10.1 to 10.9 million in the fourth quarter.

Netflix likely to beat its own guidance

During its third quarter conference call, Netflix, Inc. (NASDAQ:NFLX) gave its own Q4 projections. The company expected streaming revenue between $941-$965 million and earnings of 46-73 cents a share. Over the past several quarters, Netflix, Inc. (NASDAQ:NFLX) has exceeded its estimates. If the company meets its streaming revenue guidance, its total revenue should come at $1.18 billion as analysts estimate its domestic DVD business to generate $210 million in revenues. Some analysts think that the company may miss on EPS due to rising content costs.

For the full year 2013, analysts estimate Netflix, Inc. (NASDAQ:NFLX)’s revenue to come at $4.34 billion with $1.48 in EPS. The company had earned 29 cents a share on revenue of $3.61 billion in the same quarter a year ago.

Netflix, Inc. (NASDAQ:NFLX) shares rose 0.12% to $329.09 in pre-market trading Wednesday.

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About the Author

Vikas Shukla
Vikas Shukla has a strong interest in business, finance, and technology. He writes regularly on these topics. - He can be contacted by email at or on Twitter @VikShukla10

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