Netflix Q4 Profit Surges 45%
Great Earnings from Netflix are a trigger to look forward.
NFLX Guidance
The company expects first-quarter revenue of $387 million to $393 million and full-year revenue of $1.58 billion to $1.64 billion. Those ranges are above the averages of analysts’ forecasts both for first-quarter revenue, $373.4 million, and for full-year revenue, $1.54 billion, according to Reuters Estimates.
Netflix forecast net earnings of 25 cents to 33 cents per diluted share in the first quarter and $1.43 to $1.59 per diluted share for all of 2009. Wall Street’s average forecasts for per-share net earnings were within both those ranges — 30 cents for the first quarter and $1.49 for the year.Netflix expects to end the first quarter with 10.1 million to 10.3 million total users, and finish off the full year of 2009 with 10.6 million to 11.3 million total subscribers.
Shares of Netflix jumped about 8 percent to $32.51 after closing nearly 1 percent lower at $30.15 on Monday on Nasdaq.
(Reporting by Gina Keating; editing by Carol Bishopric, Gary Hill)
via UPDATE 3-Netflix profit up surprising 45 pct, shares rise | Markets | Markets News | Reuters .
The 2009 estimates have been increasing over the last months and after the current guidance are bound to increase further. Everybody is getting on board the NFLX story again and management are out flogging the company. It is now essential to value the company and trim or sell if NXLX becomes overvalued.
If the market bounces NFLX could quickly become the fattest pig at the trough on the back of these earnings, earnings upgrades and Wall St favouritism. [NFLKX went on to rise 15% the day after earnings.]
Despite the recession we grew our subscriber base from 8.7 million to 9.4 million subscribers in Q4. As you can see from our Q1 guidance we expect this strong growth to continue in the first quarter paralleling our strong subscriber growth with strong earnings growth with EPS at $0.38 for the quarter up 65% from a year ago and $1.32 for the full year up 36% from 2007. The strength of our business allowed us to increase EPS at these rates while at the same time substantially increasing our investment levels in Internet delivered video…
We expect our DVD and Blu-Ray shipments to continue to grow in 2009 as they did in 2008 as we improve our service levels in this general eCommerce acceptance helps us grow despite flatness in the overall DVD and Blu-Ray rental. We think our annual disk shipments will continue to grow every year for many years and even in the highly penetrated San Francisco Bay area our shipments are continuing to grow.
NFLX went on to predict DVD-by-mail rental will keep growing before peaking between 2015 and 2018. That is an important point.
Long NFLX – Feb Calls sold
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