Seeking Alpha

Netflix +5.3% AH; company raising prices for new subs

  • Netflix (NFLX) expects Q2 EPS of $1.12, above a $1 consensus. The company plans to raise prices by $1-$2/month (depending on the country) later in Q2 for new members. Existing members will maintain their current prices "for a generous time period."
  • 2.25M U.S. streaming subs were added in Q1, in-line with guidance. 1.75M international subs were added, beating a forecast of 1.6M. 200K DVD subs were lost, lowering the total base to 6.7M.
  • Netflix ended Q1 with 35.67M U.S. streaming subs, and 12.68M international subs. It expects to add 520K and 940K U.S. and international subs in Q2, respectively.
  • The company declares its international ops are "on a path to achieve profitability this year."
  • Q1 free cash flow was $8M vs. $5M in Q4 and -$42M a year ago. Streaming content obligations are at $7.1B vs. $7.3B at the end of Q4 and $5.7B a year ago.
  • Q1 results, shareholder letter
Comments (15)
  • Teodor Rasa
    , contributor
    Comments (152) | Send Message
     
    The fact Netflix thinks they provide better original programming than Showtime is laughable. Where did they draw up that poll?
    21 Apr, 05:10 PM Reply Like
  • U2A Ventures
    , contributor
    Comments (141) | Send Message
     
    have you seen orange is the new black???
    21 Apr, 05:56 PM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3021) | Send Message
     
    Disclosure: I've hated Showtime with a passion since they managed to absolutely ruin Dexter in 1 episode.
    21 Apr, 08:04 PM Reply Like
  • pat45
    , contributor
    Comments (287) | Send Message
     
    Orange is new black is ok..I like Dexter, Game of thrones, and True blood much much more.
    22 Apr, 07:35 AM Reply Like
  • Water Brothers Financial Co...
    , contributor
    Comments (339) | Send Message
     
    amazing - if you buy a growth co. at a gazillion times gaap earnings with minimal cash and you are happy with matching estimates for revenue and earnings (essentially) and a price hike - how did their last price hike do by the way, stockwise? - I would guess you are in a hypnotic state or crazy or not very market savvy. Growth stocks, concept stocks should knock the ball out of the park every quarter at this stage. and this market isn't bubbled? Please..... this would be a weak earnings report for Alcoa much less HastingsWorld.
    21 Apr, 06:44 PM Reply Like
  • Wolfhounds
    , contributor
    Comments (57) | Send Message
     
    Agree with above comment. What does .86 earnings mean will almost zero free cash flow when revenue grew 24%. How much will the incremental revenue from the price increase (on new additions for an extended time) offset content obligations which grew $1.4B y/y. I hope it pops in the morning. Good time to buy puts.
    21 Apr, 07:43 PM Reply Like
  • pat45
    , contributor
    Comments (287) | Send Message
     
    Yep, I am watching for puts.. NFLX stock price has definitely peaked.
    22 Apr, 07:38 AM Reply Like
  • Trev W
    , contributor
    Comments (7) | Send Message
     
    Cut the cord and switched to netflix about 2 months ago. I am never turning back.
    21 Apr, 08:52 PM Reply Like
  • UncleSam187
    , contributor
    Comments (176) | Send Message
     
    What about sports?
    21 Apr, 09:32 PM Reply Like
  • Sakelaris
    , contributor
    Comments (1222) | Send Message
     
    Watch Netflix with a Roku player or a similar product, and you can also get a stream for most sports: NBA Game Time, NHL GameCenter, MLB.TV, MLS Live. Of course, the lone holdout is football, but, even so, there are several football games on free broadcast TV each week, both college and pro.

     

    Yes, cut that cord!
    21 Apr, 10:50 PM Reply Like
  • pat45
    , contributor
    Comments (287) | Send Message
     
    I cut Netflix cord..switched to Xfinity on demand which is amazing and free with cable. No more recording shows..all stations including HBO, SHO available on demand..thank you Xfinity. If they get a DVD cover picture display like nflx and better search features they will win hands down.
    22 Apr, 07:43 AM Reply Like
  • Sakelaris
    , contributor
    Comments (1222) | Send Message
     
    To pay for a cable bundle with HBO and then to pay extra for things "on demand?" That is probably a very expensive way to watch programming, unless you are having a teaser discount or some such thing. Regular costs are probably well over $100 a month.

     

    The cost of Netflix: Even with an increase, under $10.
    22 Apr, 08:02 AM Reply Like
  • StepUp
    , contributor
    Comments (420) | Send Message
     
    Trades at a P/E of 190 and can't beat revenue estimates. 24% revenue growth. Good luck with that.
    22 Apr, 12:09 AM Reply Like
  • maximumvalues
    , contributor
    Comments (429) | Send Message
     
    LOOK for NFLX to stall around the 26WEEK SMA $375.25 ... ala CMG?
    22 Apr, 01:32 AM Reply Like
  • Doc's Trading
    , contributor
    Comments (588) | Send Message
     
    4 24 14
    NFLX.... As advised.....sell the stock short Apr 22nd at 372-377 (hi was 381+ ) lower recommended buy stop from 390.10 to 347.10 on half your short position. COVER other half of shorts here at 344 area or lower...(low today 334.80) for a 30+ point gain on half position...
    more later.....
    26 Apr, 01:28 PM Reply Like
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