Netflix, Inc. (NASDAQ:NFLX) 1Q14 Results Wins Rating Agency Upgrades


Dallas, Texas 04/24/2014 (FINANCIALSTRENDS) –  Netflix, Inc. (NASDAQ:NFLX) reported better than expected results from its first quarter operations on 21st April. The firm reported earnings per share of 86 cents as against the 5 cents EPS it had reported last year same quarter. Analysts had anticipated EPS of 83 cents before the earnings calls. It also provided aggressive guidance for the current quarter, which was also well above the analyst estimate. Company has provided guidance of $1.12 EPS for 2Q which will end on 30th June as against the analyst expectations of $1 EPS.

A day after the earnings call, the trading house FBR Capital reiterated its market perform rating on the stock and increased the price target to $393 from previous recommendation of $356 on the back of the strong outlook provided by the firm. It is of relevancy here to note that in the run up to the earnings call this week, the stock of Netflix, Inc. (NASDAQ:NFLX)  had been upgraded by both Oppenheimer and Pacific Crest. The upgrades peg the stock at a outperform rating and have provided aggressive price targets of $500 and $419 respectively.

Moody’s Investors Service also provided commentary on the prospects of Netflix, Inc. (NASDAQ:NFLX) on 22nd April. The rating agency showed thumbs up to the online media streaming company’s announcement as part of its earnings announcement, its decision to increase the subscription price it charges its user base going forward. Moody’s has assigned a positive rating outlook for the firm.

The rating agency commentary goes on to analyze that, “The move is not expected to have a material impact on subscriber churn rates as we believe this time the company is being particularly cautious in its approach by implementing a modest price adjustment and delaying rate increases for existing customers. However, we believe that new subscribers may want to take advantage of current pricing levels and be grandfathered in at lower rates”.