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How 2 Key Analysts View Netflix After Earnings

Netflix Inc. (NASDAQ: NFLX) reported less than stellar earnings on Wednesday after the markets closed. Also considering its high price-to-earnings (P/E) ratio of 501 (Wednesday’s close vs. estimated 2015 earnings) investors were not pleased, and there was a sizable sell-off. As a result, analysts have weighed in on this heavily watched stock, to discern what direction Netflix is going.

The online streaming giant had $0.07 in earnings per share (EPS) on $1.74 billion in revenue, compared to consensus estimates from Thomson Reuters of $0.08 in EPS on revenue of $1.75 billion. In the same period of the previous year Netflix posted EPS of $0.14 and $1.41 billion in revenue.

Global membership grew to 69.17 million members, up 3.62 million, compared to prior year growth of 3.02 million, and a forecast of 3.55 million.

The company added 0.88 million new U.S. members in the quarter, compared to 0.98 million last year and a consensus forecast of 1.15 million, marking the fourth consecutive year Netflix has added about 6 million members in the United States. International net additions totaled 2.74 million, compared to 2.04 million in the prior year and a 2.40 million forecast.

Credit Suisse gave its investment case as:

Citing modestly higher churn due to...