Wall St. Awaits Netflix Earnings Report

April 16, 2019

By Spencer Feingold

Wall Street is eagerly awaiting Netflix’s first-quarter earnings, which are scheduled to be released on Tuesday evening after market close.

The reporting is especially noteworthy for investors eyeing the increasingly crowded streaming space following the launch of new platforms like Disney+ and Apple TV+.

But analysts said Netflix’s ($NFLX) strong track record provides the best prediction — the streaming giant has beaten its guidance for global paid subscribers in 9 of the last 12 quarters.

“The trend is your friend,” Andy Hargreaves, an analyst at KeyBanc, told Cheddar. “We haven't seen anything to suggest the contrary.”

Hargreaves added that the new competition does pose a particular long-term threat to Netflix.

Disney ($DIS) could “certainly have an impact on Netflix's growth over … a short term period,” Hargreaves said. But “longer term, Netflix remains really differentiated.”

“Hulu is more competitive, or at least a more competitive threat than Disney+ because it is aiming at that broad, general entertainment viewing behavior that Netflix targets so effectively,” Hargreaves added.

Investors are also closely watching for an indicator Netflix may adjust its pricing. Disney+ announced its service will cost $6.99 a month, slightly less than Netflix.

“If Netflix can justify its own value, it can continue to drive the prices higher and I think right now, they provide enough content to certainly justify a higher price,” Hargreaves said.

For full interview click here.