Netflix expected to announce monster earnings, revenue for Q2

Analysts expect Netflix (NASDAQ:NFLX) to announce another huge quarter when it releases earnings Monday, with revenues projected to increase more than 52 percent from the year ago quarter to $790.5 million. Total revenue for the year estimates are $3.26 billion, an increase of nearly 51 percent. Over the past four quarters, the company has seen its revenue increase an average 34.4 percent, including a 45.6 percent increase--its largest ever--in the last quarter. Earnings, analysts predict, will be $1.11 a share, up 38.8 percent from a year ago--the same as in the previous quarter, but slightly less than the $1.19 originally forecast.

Netflix executives Monday also are expected to give more details on the change in its pricing strategy which earlier this month bumped the cost of a combined streaming and DVD-by-mail service by nearly 60 percent to $15.98; it gave consumers the option of an all-streaming subscription or all-DVD-by-mail subscription for $7.99 each. The move prompted an outcry from many consumers, but the company quietly stuck to its guns. Analysts have been split on the impact the new pricing will have on subscriptions.

Monday, execs also will likely describe a more complete road map for the company's expansion into Latin America, a recap of its expansion into Canada last year, with the expectation that Netflix will announce huge subscriber gains--and profitability--north of the border. Netflix is also likely to clarify if it will follow its Latin American expansion with a move into the U.K. and Spain, as reported earlier this month.

The company will also report subscriber numbers, or course. After adding 3.3 million domestic subscribers last quarter, Netflix is expected to announce it has reached 24 million subscribers this quarter.

For more:
- see this Wall Street Cheat Sheet article
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- see this Baron's article

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