Earnings Preview For Netflix (NFLX)

Netflix NFLX is expected to announce its earnings per share results after the markets close on Monday April 25. Analysts expect its earnings per share to be $1.07, up from an estimate of $0.88 three months ago, with revenue standing at $703.6 million. Netflix is a California-based Internet subscription service that streams television shows and movies. The company's subscribers can watch unlimited television shows and movies streamed over the Internet to their televisions, computers and mobile devices and in the United States. Subscribers can also receive DVDs delivered to their homes. In September 2010, Netflix began international operations by offering an unlimited streaming plan without DVDs in Canada. The market is very upbeat about Netflix. Analysts are predicting Q1 revenues of $703.6 million and over $763 million in the next quarter, an increase of 8%. For the whole year, Netflix is expected to post $3.13 billion of revenues. The year 2012 is supposed to be even better, with revenues expected to surge by 30% to $4.08 billion. Netflix's shares have gained an astonishing 180% over a year. This rise is fueled by, among other things, by Netflix's nice habit of beating analysts' expectations. In Q4 2010, analysts predicted earnings per share of $0.71, with Netflix posting 0.87, outperforming expectations by 22%. Analysts will be hoping that a recent family-friendly move, in which Netflix may let subscribers with streaming-only accounts watch video on more than one device, will further propel its shares to new heights.