Investors Uncertain About Netflix's Q3 2011 Earnings, Expect Answers on Monday
October 21, 2011 8:48 AM
Netflix CEO Reed Hastings
According to Thomson Reuters, I/B/E/S, analysts expect third quarter revenue to come to $801.53 million and earnings per share at 94 cents
Netflix has had a pretty hard time this year with all the recent changes it made as well as the negative reactions to said changes. Now, investors are wondering what Netflix will report as far as quarterly earnings go on Monday, but the expectations aren't too high.
Netflix announced in July that it was raising prices and changing the plans available for customers. Instead of a monthly price of $9.99 for both video streaming and DVD by mail, these two plans would be split into their own categories for $7.99 a piece. Obtaining both together would cost $15.98.
Other hiccups came up along the way, such as Netflix's
loss of Starz content
and its decision to create a
DVD spin-off company
called Qwikster, which it
retracted less than a month
after announcing the new DVD entity.
Now, Netflix is paying for all this stumbling around through mid 2011. It already
cut its U.S. subscriber predictions
from 25 million to 24 million for the quarter, and investors don't expect to hear anything else worthwhile when Netflix's quarterly results are released on Monday.
"Between lower-than-anticipated [subscriber] growth and the reversal of the decision to completely separate the DVD streaming business, these are clearly trying times for Netflix," said Steve Frankel, a Dougherty and Co. analyst. "The near term is clouded by higher than anticipated churn, a situation which is likely to negatively impact the fourth quarter as well."
According to Thomson Reuters, I/B/E/S, analysts expect third quarter revenue to come to $801.53 million and earnings per share at 94 cents. It also expects Netflix to achieve its lowered subscriber growth number. In Q3 2010, Netflix
generated $553 million in revenue
, but gained 1.9 million subscribers.
Things aren't looking good for Netflix right now in the eyes of investors, and investors expect some clear answers come Monday. However, some analysts say they're looking ahead to the fourth quarter, since it holds the holiday shopping period and is usually a strong time for Netflix. Also, analysts are optimistic because Netflix's expansion internationally is expected to move into Europe next, and Netflix still has a content library "far ahead" of the likes of Blockbuster.
"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il
Netflix Can't Make Up Its Mind: Qwikster is No More, DVDs to Remain at Netflix.com
October 10, 2011, 9:27 AM
Netflix to Spin Off DVD Service with Qwikster, CEO Apologizes for "Lack of Communication"
September 19, 2011, 6:35 AM
Netflix Underestimated Customer Backlash, Lowers Q3 U.S. Subscriber Forecasts
September 15, 2011, 1:33 PM
Netflix Offered Starz $300 Million to Renew Contract
September 2, 2011, 7:26 PM
Netflix Generates $553M in Revenue for Q3 2010, Now a "Streaming" Company
October 21, 2010, 9:58 AM
Google has developed Deep Learning Algorithm to detect Diabetic Eye Disease
December 4, 2016, 5:00 AM
Google plans ultra-fast wireless Internet for Research Triangle Park, N.C.
August 12, 2016, 6:30 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Most Popular Articles
Sales Battle - Apple iPad Mini vs Samsung Galaxy Tab
November 29, 2016, 12:36 AM
PlayStation 4 Pro – 4K Console for 4K TVs
November 28, 2016, 1:00 AM
Phillips 55’ 4K Smart TV – Is This Really a Deal? We Think So.
November 25, 2016, 9:44 AM
Google Wi-Fi – A Scalable Wi-Fi Solution for any size Home or Apartment
November 30, 2016, 1:00 AM
PIQ ROBOTTM reveals its new artificial intelligence software
November 29, 2016, 12:59 AM
Latest Blog Posts
Dec 4, 2016, 5:00 AM
Apple Car is Not Dead
Dec 4, 2016, 1:00 AM
Dec 3, 2016, 5:00 AM
Dec 2, 2016, 5:00 AM
Surface Ergonomic Keyboard
Dec 1, 2016, 3:01 AM
Chapeconense plane crash: Football rallies around Brazilian Team
Nov 30, 2016, 1:00 AM
How to Extends Your iPhone’s Battery Life
Nov 29, 2016, 12:49 AM
Nov 28, 2016, 1:12 AM
News: Fidel Castro
Nov 27, 2016, 5:00 AM
Nov 26, 2016, 5:00 AM
Changes in Social status affect the way genes turn on and off within immune cells.
Nov 25, 2016, 5:12 AM
Austrian far–right hopeful Hofer may back EU vote.
Nov 24, 2016, 4:00 AM
Final Fantasy XV Leaked Before Nov 29 Launch Date
Nov 23, 2016, 1:00 AM
Nov 22, 2016, 2:26 AM
Nov 21, 2016, 1:00 AM
HTC Makes Big Moves in China
Nov 20, 2016, 2:00 AM
Do you know who is the number one company in the word?
Nov 19, 2016, 5:30 AM
Foldable Cardboard ”EcoHelmet” wins James Dyson Award’s Top Prize
Nov 18, 2016, 2:39 AM
Scientists Discover Roundest Object Ever Spotted in Universe
Nov 17, 2016, 1:00 AM
Smallest Device Lets You Print Almost from Anywhere
Nov 16, 2016, 9:32 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information