Netflix Inc’s (NFLX.O) quarterly report on Monday may offer an advanced preview of whether Facebook, Amazon and other heavyweights behind much of the U.S. stock market’s record-breaking rally can keep delivering.
Netflix is due to report its quarterly results on Monday after the stock market closes and so far, it had jumped nearly 15 percent this year alone, outpacing the S&P 500’s 5 percent increase. Last year Netflix surged 53 percent.
According to the quarterly report on Oct. 16, Netflix added more global subscribers than analysts had expected. In response, its stock hit a record high in after-hours trade before dipping the following day.
On the other hand, Netflix hiked U.S. prices for the first time since 2015, potentially providing more cash to produce original content, but also increasing the risk of losing customers.
Based on the forecast Netflix is expected to add 6.3 million subscribers worldwide in the December quarter, which would bring its global customer base to nearly 115.6 million.
Analysts on average expect a 32.5 percent jump in revenue to $3.28 billion, and net income of $186.3 million, up 179 percent. Analysts expect earnings per share of 41 cents.