Thomas Weisel Ups NetFlix Estimates

Analyst Gordon Hodges says the movie rental company's subscription growth beat his estimate

Thomas Weisel raised its estimates on NetFlix (NFLX ).

Analyst Gordon Hodges says 1.052 million end-subscribers beat his 992,000 estimate. He says the company's national penetration of TV households grew 23% sequentially, while penetration of San Francisco Bay Area TV households grew 21%. Hodges thinks a rollout of regional distribution centers offering near next-day delivery in major metropolitan areas has led to increased national penetration, and could lead to lower monthly churn.

Hodges raised his $41 million EBITDA 2003 estimate to $42 million, and lowered the $237 million revenue estimate to $251 million. He also upped the 2004 $60 million EBITDA estimate to $62 million, and upped the $325 million revenue estimate to $339 million. He has a $25 target, and reiterates his buy rating.

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