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Netflix Inc. (Nasdaq: NFLX) stock has been hit hard by this month's sell-off, down 8.2% since Sept. 10. That's put even more emphasis on NFLX's third-quarter earnings report today (Wednesday).
Analysts are predicting earnings per share (EPS) of $0.93 on revenue of $1.41 billion, when Netflix reports after the bell today.
By hitting those targets, NFLX will have EPS growth of 78.8% and revenue growth of 27.4% from last year.
Last quarter, NFLX missed EPS by a penny at $1.15. However, revenue grew 25.3% in the quarter. Eclipsing last quarter's revenue growth would be a good first sign for shareholders.
Another key figure to watch is Netflix's user growth.
Last quarter, Netflix added 1.7 million members to its domestic and international streaming business. That pushed Netflix over the 50 million member mark for the first time.
"Exclusive content" is another area that bears watching. Netflix already has powerhouse programs like "House of Cards" and "Orange Is the New Black," and it recently expanded its offerings.
This month, Netflix announced a partnership with Adam Sandler for four feature-length films. The company also plans to remake the 2000 film "Crouching Tiger, Hidden Dragon." Any further announcements about exclusive content would be a boost for shareholders.
While those are the first things for investors to look for tonight, there will be a much more important number in the report. In fact, this figure is a huge long-term catalyst for NFLX stock...
NFLX Earnings: The Most Important Figure
International expansion is the single most important update in this report. In mid-September, Netflix launched in France, Germany, Austria, Switzerland, Belgium, and Luxembourg.
"We've been building up to this for a long time," Netflix CEO Reed Hastings said in September. "This is the biggest international expansion we've ever done, so it is hugely important."
Here's why it's so critical to NFLX...