Business Corpus: Netflix Earnings Report Next Possible Catalyst For StockInternet television network Netflix has seen its shares surge to record high territory ahead of its second-quarter earnings report, due on Monday. Whether Netflix stock continues its ascent will depend on the company's Q2 results and guidance, analysts say. The post Netflix Earnings Report Next Possible Catalyst For Stock appeared first on Investor's Business Daily.

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Internet television network Netflix (NFLX) has seen its shares surge to record-high territory ahead of its second-quarter earnings report, due after the market close on Monday. Whether Netflix stock continues its ascent will depend on the company's results and guidance, analysts say.

Netflix stock rose 0.7% to close at 418.65 on the stock market today. It hit a record high of 423.21 on June 21.

The Los Gatos, Calif.-based company has forecast adding 6.2 million subscribers in the second quarter. That would boost its total to 131.2 million subscribers worldwide.

Analysts expect Netflix to earn 79 cents a share on sales of $3.94 billion for the June period. In the year-earlier quarter, it earned 15 cents a share on sales of $2.79 billion.

For the September quarter, Wall Street is modeling Netflix to earn 74 cents a share on sales of $4.14 billion. That compares with earnings per share of 29 cents on sales of $2.98 billion in the year-earlier period.

Netflix Stock A Battleground

Netflix has been a battleground stock as bears and bulls clash over its proper valuation. Bears say the stock is overvalued because the company is burning through cash at a blistering pace as it ramps up production of original content. Bulls say Netflix is the clear winner in the shift from linear television to on-demand streaming video.

Nomura Instinet analyst Mark Kelley on Wednesday initiated coverage of Netflix with a neutral rating. He set a price target of 370.

"Netflix's expansion has been an undeniable success story, and we think that significant opportunity remains for both subscriber growth and ARPU (average revenue per user) increases," he said in a report. "However, the company faces intense competition, a maturing U.S. market, and the potential for a longer-than-expected international ramp. As such, the stock's near all-time high valuation leaves us cautious in the near term."

Netflix's competitors include Amazon.com (AMZN) and Hulu today, with Apple (AAPL) and Walt Disney (DIS) entering the market next year.

'Highly Attractive' Stock

Also Wednesday, GBH Insights analyst Daniel Ives reiterated his "highly attractive" rating on Netflix stock with a price target of 500.

He predicted that Netflix "will handily beat" Wall Street's consensus estimates for the second quarter.

Monness Crespi Hardt analyst Brian White on Monday maintained his buy rating and price target of 460 on Netflix stock.

"Netflix's stock is up 113% year to date and thus needs another quarter of strong results to keep the stock moving in an upward trajectory," he said in a report. "In our view, the combination of engaging new content, momentum in overseas markets and a business model that is successfully scaling on a global basis has given the market enough ammunition to expand the stock's valuation."

Netflix Stock Seen As Fairly Valued Ahead Of Likely Solid Earnings Report

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