Netflix (NFLX) took most of the surprise out of its Q3 earnings report, scheduled for this afternoon, during a pre-announcement earlier this month: Q3 will be mostly in line, but the crappy economy is taking its toll on growth, which caused the company to significantly lower its subscriber target for Q4.
We’ll cover Netflix’s earnings report LIVE today, beginning with live coverage and analysis of their release, expected after the bell, and live blogging its conference call at 5 p.m. ET. Update: LIVE coverage here.
What we hope to hear from management today: Whether the company is planning anything aggressive to reingnite growth — price cuts, expanding its streaming service, etc. — or if it’s just going to ride out the bad times with its current offerings. Netflix shares have dropped some 18% since the company lowered its Q4 expectations on Oct. 6, worse than the 12% drop in the Nasdaq composite index, according to the AP.
Either way, the company has grown faster this year than last year, thanks to reduced competition from Blockbuster: If the company hits the midpoint of its current end-of-year subscriber growth forecast — 9.1 million subscribers — that’ll represent 21% year-over-year subscriber growth, up from 18% growth from 2006 to 2007.
Q3 Revenue: $343-$348 million guidance, $342.6 million consensus
Q3 EPS: $0.26 to $0.34 guidance, $0.31 consensus
Q3 Subscribers: 8.672 million (preannounced), below the low end of guidance of 8.675-8.875 million
Q4 Revenue: $353-$359 million guidance, down from $357-$367 million original guidance, $358.8 million consensus
Q4 EPS: $0.30-$0.38 guidance, increased slightly from old guidance of $0.29 to $0.37, $0.33 consensus
Q4 Subscribers: 8.95-9.25 million guidance, down from 9.1-9.7 million original guidance
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