Imperial Capital's Bullish Stance On Netflix Unchanged Ahead Of Q3 Print

Netflix, Inc. NFLX plummeted immediately following its second quarter-earnings release due to a big miss on subscriber growth. Heading into the company's third-quarter print, Imperial Capital is modeling for upside and holding on to a bullish stance on the stock.

The Analyst

Imperial Capital's David Miller maintains an Outperform rating on Netflix with an unchanged $494 price target.

The Thesis

Netflix is scheduled to report its third-quarter results Oct. 16 after market close and Miller is modeling the company to report the following:

Total net subscriber adds of 4.91 million.
Total U.S. net subscriber adds of 0.65 million.
Total international net subscriber adds of 4.46 million.
Total global streaming subscribers of 135.3 million.
Total revenue of $3.99 billion.
Non-GAAP EPS of 70 cents.
The company should show a "measurable rise" in average selling price.
The international business should show strong traction in Europe and momentum in Australia and New Zealand.
Fourth quarter revenue guidance of $4.24 billion, $348.7 million in EBIT, 48 cents per share in EPS.