On Thursday, Netflix disclosed its fourth quarter results with an impressive addition of 29 million new paid members during the year, significantly higher than the 22 million viewers it added in 2017. This brought total paid members by the end of the year to 139 million, up 26% on a y-o-y basis.
Out of the total 29 million new members Netflix added in 2018, 8.84 million joined during the company's fourth quarter. This was well ahead of Netflix's guidance for 7.6 million paid member additions during the period.
Netflix's fourth-quarter revenue came in at $4.19 billion, up 27% from the year-ago quarter.
But its earnings per share declined from $0.41 in the fourth quarter of 2017 to $0.30, still higher than management's guidance for EPS of $0.23. The company's decline in EPS came as Netflix's operating margin narrowed from 7.5% in the year-ago quarter to 5.2%, reflecting significant content investments during the quarter.
Further, the company added that its cash burn is expected to in 2019 and then likely to drop off in years ahead. The company opined that its free cash flow deficit increased to $1.32 billion, compared with the deficit of $524 million a year ago. Netflix also said that it plans to bring its cash burn up to $3 billion for 2018.
But the company is hopeful that its fee cash flow will improve in the years ahead.
NFLX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 37 cases where NFLX's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The RSI Indicator entered the oversold zone -- be on the watch for NFLX's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The Aroon Indicator entered an Uptrend today. In of 286 cases where NFLX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Momentum Indicator moved below the 0 level on April 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on NFLX as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
NFLX moved below its 50-day moving average on April 19, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NFLX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NFLX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.920) is normal, around the industry mean (5.400). P/E Ratio (51.065) is within average values for comparable stocks, (87.119). Projected Growth (PEG Ratio) (1.889) is also within normal values, averaging (2.822). NFLX has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.040). P/S Ratio (8.190) is also within normal values, averaging (29.645).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of online movie rental subscription services
Industry MoviesEntertainment