Netflix: No Thanks - We'll Have Level 3 Instead
Focus Equity • 61 Comments
Focus Equity • 61 Comments
Apr. 15, 2015, 5:35 PM
Apr. 15, 2015, 4:18 PM
- Netflix (NASDAQ:NFLX) is up 12.7% after hours on a Q1 report where it beat earnings expectations and pointed to total global streaming membership of 62.3M.
- Netflix notes it added 2.3M new members, above its guidance of 1.8M, and added 2.6M new international members vs. guidance of 2.25M. Members streamed 10B hours in Q1.
- Contribution margin for total streaming rose to 17.7% in Q1, up from a year-ago 15.6% and Q4's 13.6%. U.S. contribution margin ran to 31.7% from Q4's 28%. Content spending was lower than forecast.
- The company expects to run ahead of U.S. margin growth of 200 bps/year in 2015 as costs are spread more globally. Netflix will shift some U.S. marketing budget to international, to play on growth opportunities.
- Q2 forecast: 2.5M net adds (1.9M international, 0.6M in U.S.) and total streaming contribution margin of 15.4% (32% in U.S., -22.4% international).
- CEO Reed Hastings, CFO David Wells and Chief Content Officer Ted Sarandos will do a live video interview at 6 p.m. ET, conducted by RBC's Mark Mahaney and MoffettNathanson's Michael Nathanson.
- Q1 shareholder letter
Apr. 15, 2015, 4:08 PM
- Netflix (NASDAQ:NFLX): Q1 EPS of $0.77 beats by $0.08.
- Revenue of $1.57B (+23.6% Y/Y) in-line.
- Shares +12.5%.
Apr. 10, 2015, 6:59 AM
- Citi upgrades Netflix (NASDAQ:NFLX) to a Buy rating from Neutral.
- The investment firm likes the "reasonable" entry point at Netflix's current share price with investors getting the potential for international growth in new markets almost for free.
- The strong content at Netflix also sets its apart from other streaming rivals, note analysts.
- Citi fires up a price target of $525 on NFLX with a long-term upside call of $750 or higher.
- NFLX +2.43% premarket to $450.
Mar. 24, 2015, 10:07 AM
- A bullish note from Cantor Fitzgerald on Netflix (NASDAQ:NFLX) isn't going unnoticed.
- The investment firm maintains the company is the "clear winner" of the TV unbundling trend.
- Despite the new competition from HBO and Dish Network, the analyst team at Cantor think the scale of Netflix puts in an enviable position.
- Bears may cringe, but Cantor likes the value proposition on NFLX.
- Cantor takes its price target on Buy-rated Netflix to $500 from $450.
- NFLX +2.70% to $435.61.
Mar. 9, 2015, 2:02 PM
- Shares of Netflix (NASDAQ:NFLX) are down 2.4% to $443.23 on above-average volume amid confirmation from Apple that HBO Now will price at $15 per month (low end of expected range) and launch in April.
- HBO Now is considered a more viable threat to Netflix than streaming options from major broadcasters and pay-TV operators.
- Previously: HBO confirms HBO Now launch on Apple TV by April 12 (Mar. 09 2015)
Mar. 4, 2015, 8:45 PM
- DreamWorks Animation's (NASDAQ:DWA) Chinese joint venture is "incredibly important" to the troubled company, CFO Fazal Merchant said today as attention turns from a rough Q4 to the next two years for the studio.
- Thanks to co-founder Jeffrey Katzenberg's frequent visits to China, they're in a "blessed place" with Oriental DreamWorks, the partnership the studio formed with China Media Capital, Shanghai Media Group and Shanghai Alliance Investment to create family-friendly content.
- The venture's first project, Kung Fu Panda 3, is due in 2016. The first two films in the Kung Fu Panda series drew worldwide grosses of $632M and $665M respectively, off production budgets of $130M-$150M.
- Merchant was speaking at Morgan Stanley's Technology, Media & Telecom Conference and also proclaimed Netflix (NASDAQ:NFLX) "incredibly pleased" with their deal through 2017 (a good thing if DWA is as dependent on the streamer as rumored). "If there were issues, I don't think they'd be shy about telling us."
- Shares finished the day up 5.7%.
- Earlier: DreamWorks up 7.7%, on two-day surge as planning takes shape (Mar. 04 2015)
- Previously: DreamWorks rallies -- but too dependent on Netflix? (Feb. 25 2015)
- Previously: DreamWorks pummeled after brutal quarter; rough year ahead (Feb. 24 2015)
Feb. 4, 2015, 5:22 PM
Jan. 21, 2015, 12:45 PM
Jan. 21, 2015, 9:14 AM
Jan. 21, 2015, 8:39 AM
- Shares of Netflix (NASDAQ:NFLX) are back over $400 for the first time since October after the company's EPS beat and sub guidance helped to lift sentiment.
- The two pullouts from the company's report and earnings call Q&A that have the attention of investors are the broad scale of the streamer's international expansion plan (200 nations by end of 2016) and the outlook for global profitability by the end of 2017.
- Earnings call transcript
- Previously: Netflix beats by $0.27, revenue in-line (Jan. 20 2015)
- Previously: Netflix higher after subscriber growth satisfies (Jan. 20 2015)
- NFLX +18.10% premarket to $412.30.
Jan. 20, 2015, 5:38 PM
Jan. 20, 2015, 4:18 PM
- Netflix (NASDAQ:NFLX) reports it added 1.90M net subscribers in the U.S. to edge its guidance of 1.85M and the consensus view of 1.83M.
- International net subs added were 2.43M vs. 2.15M guided and 2.17M consensus.
- Guidance for Q1 of 2015 is for 1.80M U.S. adds and 2.25M global.
- Total streaming contribution margin +140 bps Y/Y and - 440 bps Q/Q to 13.6% as the company's entry into new markets was a factor.
- Netflix says it will increase the percentage of original content spending over the next few years as new series continue to score highly.
- Piracy issues in new European markets are noted.
- Letter to shareholders (.pdf)
- Previously: Netflix beats by $0.27, revenue in-line (Jan. 20)
- NFLX +11.2% after-hours
Jan. 20, 2015, 4:06 PM
- Netflix (NASDAQ:NFLX): Q4 EPS of $0.72 beats by $0.27.
- Revenue of $1.48B (+25.4% Y/Y) in-line.
- Shares +9.2%.
Jan. 2, 2015, 1:14 PM
- Fresh off a roller-coaster 2014, Netflix (NASDAQ:NFLX) is starting 2015 by posting solid gains in spite of a 0.6% Nasdaq drop. Volume (1.3M shares vs. a 3-month daily average of 2.5M) has been moderate.
- This morning, Leichtman Research announced a November poll of 1,233 U.S. adults in households with a TV set found 36% of Netflix subs stream daily, and 72% weekly. Those figures are respectively up from 29% and 70% in an Oct. 2013 poll, and just 10% and 43% in a 2010 poll.
- Leichtman also reports 48% of cord-cutters have Netflix, compared with 36% of pay-TV subs. Whereas only 32% of pay-TV subs stream Netflix daily, 53% of cord-cutters do so.
- An RBC survey of U.S. consumers carried out a year ago found 44% stating they use Netflix, and 2/3 of them saying they're either "extremely satisfied" or "very satisfied" with the service.
Dec. 17, 2014, 10:04 AM
Netflix, Inc. operates as an Internet subscription service company, which provides subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. The company operates its business through three operating segments: Domestic streaming, International streaming and... More
Industry: Music & Video Stores
Country: United States
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