Earnings Preview: Netflix, Inc. and eBay Inc

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Netflix, Inc. (NASDAQ:NFLX) and eBay Inc (NASDAQ:EBAY) are scheduled to report its earnings results for the third-quarter on Wednesday, October 15, 2014.

Earnings expectations for Netflix

Wall Street analysts are expecting Netflix, Inc. (NASDAQ:NFLX) to report earnings of $0.91 per share and $1.4 billion in revenue for the third quarter, based on data compiled by Bloomberg.

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The management of the company estimated that it would be able to deliver $0.89 in earnings per share and $1.2 billion in revenue. The company expected to increase its membership by 3.69 million to 53.74 million members for the quarter.

During the same period a year ago, the online video streaming company reported $0.52 in earning per share and $1.1 billion in revenue. Netflix, Inc. (NASDAQ:NFLX) posted $1.15 in earnings per share on $1.3 billion in revenue during the second-quarter.

The online video streaming company has been expanding its operations in Europe and continues to sign agreements with different media entities to expand its content libraries. Netflix, Inc. (NASDAQ:NFLX) currently has content for all age groups. Its international expansion and content library serve as catalysts growth.

Earnings estimates for eBay

Data compiled by Bloomberg showed that analysts have a consensus third-quarter earnings estimate of $0.67 per share for eBay Inc (NASDAQ:EBAY). Its revenue is expected to be around $4.4 billion.

During the same period a year ago, eBay Inc (NASDAQ:EBAY) reported $0.64 in earnings per share and $3.9 billion in revenue. The online market place operator delivered $0.69 in earnings per share and $4.4 billion in revenue for the second quarter.

Last month, the board of directors of eBay Inc (NASDAQ:EBAY) announced its decision to spinoff PayPal into a separate business, which was welcome by its shareholders particularly Carl Icahn.

Susquehanna analysts Brian Nowak and James Friedman noted that PayPal is growing modestly faster than Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA). However, they emphasized the eBay’s online payment service could face greater challenges.

According to them, they “have a hard time getting overly bullish on PayPal’s potential for margin expansion.”

The shares of eBay Inc (NASDAQ:EBAY) slightly increased to $50.59 per share on Tuesday. Susquehanna has a $56 per share price target for the stock.

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