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.

Price Action

Shares of Netflix were trading around $342 at time of publication.

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