Post-Earnings Analysis - Netflix

LONDON, January 30, 2015 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings analysis on Netflix Inc. (NASDAQ: NFLX). On January 20, 2015, the company reported its financial results for Q4 FY14 and full year FY14 (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Netflix&d=30-Jan-2015&s=NFLX to read our free earnings review on Netflix Inc. (Netflix). During Q4 FY14, the company added 4.33 million members compared to 4.07 million members in Q4 FY13. Further, Netflix added a record 13.0 million new members in FY14 compared to 11.1 million in FY13. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Netflix&d=30-Jan-2015&s=NFLX

Earnings Overview 

During Q4 FY14, Netflix reported revenues of $1.48 billion compared to $1.18 billion in Q4 FY13. The company's revenues during the reported quarter came close to Bloomberg analysts' forecast of $1.49 billion. The company's domestic streaming revenue in Q4 FY14 grew to $917.44 million from $740.55 million in Q4 FY13. Further, Netflix's Q4 FY14 international streaming revenue grew to $387.80 million from $221.42 million in Q4 FY13. In Q4 FY14, Domestic DVD segment's revenue stood at $179.49 million compared to $213.26 million in Q4 FY13. The free research on NFLX can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Netflix&d=30-Jan-2015&s=NFLX

Netflix's operating income fell to $65.05 million in Q4 FY14 from $82.29 million in Q4 FY13. Meanwhile, The company's Q4 FY14 GAAP net income surged to $83.37 million, or $1.35 per diluted share, from $48.42 million, or $0.79 per diluted share, in Q4 FY13. Analysts from Bloomberg had expected GAAP net income of $27.73 million, or $0.44 per share, in Q4 FY14. The company's non-GAAP net income during the reported quarter stood at $44.76 million, or $0.72 per diluted share.

For FY14, Netflix's revenues stood at $5.50 billion compared to $4.37 billion in FY13. The company's revenues during FY14 came in line with Bloomberg analysts' forecast of $5.50 billion. The company's FY14 domestic streaming revenue grew to $3.43 billion from $2.75 billion in FY13. Meanwhile, Netflix international streaming revenue surged to $1.31 billion in FY14 from $0.71 billion in FY13. However, the company's Domestic DVD segment's revenue fell to $765.16 million in FY14 from $910.80 million in FY13. Sign up and read the free analyst's notes on NFLX at:

http://get.Investor-Edge.com/pdf/?c=Netflix&d=30-Jan-2015&s=NFLX

During FY14, the company's operating income surged to $402.65 million from $228.35 million in FY13. Netflix's FY14 GAAP net income also surged to $266.80 million, or $4.32 per diluted share, from $112.40 million, or $1.85 per diluted share, in FY13. Analysts from Bloomberg had expected GAAP net income of $211.18 million, or $3.42 per share, in FY14. As of December 31, 2014, the company had cash and cash equivalents of $1.60 billion.

In its guidance for Q1 FY15, Netflix anticipates to end the quarter with 61.4 million global members. Netflix expects to increase its U.S. contribution margin from 30% in Q1 FY15 to about 32% in Q1 FY16 and about 34% in Q1 FY17. Due to its international expansion plans in FY15, the company anticipates operating income for the full year to be lower than FY14. In late Q1 FY15, the company will be launching Netflix services in Australia and New Zealand. Visit Investor-Edge and access the latest research on NFLX at:

http://get.Investor-Edge.com/pdf/?c=Netflix&d=30-Jan-2015&s=NFLX

Stock Performance 

On the following day of the earnings release, January 21, 2015, Netflix's stock rallied 17.34% to end the session at $409.28. Since then, the stock has mostly witnessed a positive momentum. Further, on the last close, Thursday, January 29, 2015, it finished at $443.80, 0.30% above its previous day's closing price of $442.46, after vacillating between $437.50 and $447.49. A total of 2.16 million shares were traded which was below its three months average volume of 2.21 million shares. Over the last one month and previous three months, the company's shares have surged 29.79% and 17.38%, respectively. Further, the stock has gained 10.83% in the past one year. Shares in Netflix closed above their 50-day and 200-day moving averages of $354.12 and $402.21, respectively. Furthermore, the stock traded at a PE ratio of 102.73 and has a Relative Strength Index (RSI) of 75.66.

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 11 corporate insider transactions made by Reed Hastings, Founder and CEO of Netflix. Between December 29, 2014 and January 26, 2015, he purchased a total of 79,800 shares at an average price of $11.70 per share, for a total value of $933,330. During the same period, he disposed of an equal number of shares an average price of $386.65 per share, for a total value of $30.85 million. Complimentary in-depth research on NFLX is available at:

http://get.Investor-Edge.com/pdf/?c=Netflix&d=30-Jan-2015&s=NFLX

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

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