USB Piper Keeps 'Outperform' on Netflix
USB Piper reiterates outperform on Netflix (NFLX ).
Analyst Safa Rashtchy says better than expected subscriber growth leads him to expect revenue upside of about $1 million above his $35.6 million second quarter estimate. He notes the second quarter earnings per share could surpass his breakeven estimate to $0.01-$0.02.
He also says his estimates do not account for possible lower than expected subscriber acquisition costs (the company's main profitability leverage point). Rashtchy keeps his $0.40 2002 loss and $0.19 2003 loss estimates pending a full second quarter earnings call on July 24, but expects to raise estimates for the third quarter and beyond as his third quarter subscriber estimates are already surpassed.