What to expect from Netflix's Q2 Earnings?
Netflix (NASDAQ:NFLX) is scheduled to announce Q2 earnings results on Wednesday, July 19th, after market close.
Wall Street forecast that Netflix will report a 4% year-on-year rise in revenue in the first quarter to $8.29 billion, higher than the company guidance of $8.24B. As per the company guidance, Diluted EPS is set to fall to $2.84 from $3.20 in the prior year, below the market consensus of $2.86.


Key Metrics: The internet video service ended Q1 with 232.5M paid memberships. The company announced a "broad rollout" of its paid-sharing initiative -- the password-sharing crackdown -- in the second quarter. In Q2, the company launched paid sharing in four countries and were pleased with the results.

Analyst ratings: Wells Fargo analyst Steven Cahall believes that Netflix is a buy if it falls after reporting earnings. Wells Fargo expects a gain of 2.1M net subscriber in the latest quarter.
Deutsche Bank maintains buy rating on the streaming-video company but raises PT to $475 from $410. Analyst Bryan Kraft is positive on the companyâs crackdown on account sharing and the introduction of an ad-supported subscriber tier.
Macquarie raised PT to $410 from $350 citing optimism about the video-streaming companyâs targeting of account sharing.

Earning History: Netflix fell 12.5% after reporting its Q1 earnings as revenue growth slowed in Q1. Over the last 1 year, NFLX has beaten EPS estimates 75% of the time and has beaten revenue estimates 50% of the time.
Over the last 3 months, EPS estimates have seen 6 upward revisions and 21 downward. Revenue estimates have seen 2 upward revisions and 26 downward.
Recent earnings Analysis from our contributors:Why Netflix's Most Important Earnings Period Is Always Its Next OneNetflix: The Big Day Is Nearly Upon Us