Netflix earnings: As the streaming company increases content investment, here’s what to expect
Netflix Inc. is scheduled to report its first-quarter earnings results after the market closes on Monday. Here’s what investors can expect:
Earnings: Netflix NFLX, -0.63% is expected to report earnings of 37 cents per share, according to analysts surveyed by FactSet. That would be a more than sixfold increase compared with the 6 cents per share earnings Netflix reported during the same quarter a year ago and a 147% jump from its most recent fourth quarter. Netflix has beaten the FactSet consensus on earnings in eight of the last 10 quarters.
As Netflix Prepares to Report Earnings, It’s Clearly Streaming in a League of Its Own
Expectations are high going into Netflix’s (NFLX) first-quarter earnings report, which arrives after the close on Monday afternoon. With the help of the very strong Q4 report and solid Q1 guidance it delivered in January, shares are already up 16% on the year, leaving the streaming giant sporting a $62 billion market cap and trading for seven times its 2016 sales.
Earnings Preview: What To Expect From Netflix On Monday
Netflix Inc. is scheduled to report earnings after Monday’s close. Netflix is the first, F.A.N.G. stock to report earnings and is a widely owned leading stock. Netflix’s stock hit a record high of $148.29/share in March 2017 and is trading near $143/share.
The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
How Successful Traders Think
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On the Tape Today | 4-17-17
ESPR | Esperion Thera showing bullish relative strength with room to go. On April 4, we called for an inside day breakout to the upside, with support expected to hold. So far, so good. Game planning a swing trade long on a $39.50 buy stop with a target to sell @ $45. Stop loss on a close below $38.
MOS | Mosaic breakdown on solid well-offered candlesticks offers a swing trade short sale with a target in the $25 area to cover. Minor support at the $27 level but that's not stopping me from game planning a sell-stop below the first 30 minutes of trading. Stop loss on a close above $28
Tape Reading the SPY ETF
$SPY produced an inside day breakdown, and finally pushed out of the $234-236 trading range.
Minor support @ $232 and the next significant level comes in at $228. I’m not ready to call a top on he stock market, but the bullish tone appears neutral at best. With obvious lower highs and the trend in bullish order flow broken, bullish traders need a solid earnings season to feel comfortable.
North Korea remains in the news and I’m sure the President isn’t done flexing his muscle, which should make for increased volatility at the very least. On trading lesson to note from last week. We mentioned a rising $VXX as the market remained stuck in neutral.
This important indicator signaled coming volatility. Trading promises an interesting week with geo-political news and earnings season. If you were bored the last month, if you are tired of taking small losses because of a choppy market, the $VXX can you an early warning sign to expect more.
Make sure you game plan for slightly wider stops, and prepare to hold winning trades a little longer.
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 4-17-17 | Monday Edition
Bullish Momentum: ESPR, TSLA
Bearish Momentum: slca, x, afsi, aa, tpx, dvn, stld, cvx, dish, apc, fast, fnsr
Long-Term Order Flow
Bullish Order Flow: ESPR, TSLA, MOMO, DXC, BIVV, AMT, RH, ADBE, BABA, MCD, CCI, WDC, AMZN, AKRX
Bearish Order Flow: dvn, cvx, hal, tsco, lulu, kmx, psx, acn, ups, car, fnsr, snap, akam
2X Normal Volume: PNC
Inside Days: vz, so, mrk, nke, avgo, bax, stx, bsx, pep, jd, lb, cag, cl, lly, unh, ip, aet, khc, dg, un, goog, bivv
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