For its third fiscal quarter (ending September 30), Netflix Inc (NASDAQ: NFLX) has reported a 45% increase in E.P.S. from $3.80 a year ago to $5.52 in the current quarter. This result exceeded the consensus estimate of $5.11 by $0.41. For the latest four quarters through September 30, E.P.S. were $18.06 versus $10.20 for the same period a year ago — an increase of 77%.
Recent Price Action
On 10/17/24, Netflix Inc (NASDAQ: NFLX) stock declined by -2.0%, closing at $687.65. Moreover, exceptionally high trading volume at 308% of normal accompanied the decline. The stock has been strong relative to the market over the last nine months but has declined -5.5% during the last week.
Current PriceTarget Research Rating
NFLX is expected to continue to be a major Value Builder reflecting capital returns that are forecasted to be above the cost of capital.
Netflix has a current Value Trend Rating of C (High Neutral). The Value Trend Rating reflects very contradictory signals from PTR’s two proprietary measures of a stock’s attractiveness. Netflix has a slightly negative Appreciation Score of 30 but a very high Power Rating of 93, triggering the High Neutral Value Trend Rating.
Rating Review
In light of this encouraging new earnings information we are reviewing our current Overall Rating of C. This review will be completed in the next several days.
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