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Tuesday, October 16, 2018

Netflix to report third-quarter earnings after the bell

All eyes are on Netflix's subscriber growth numbers as the company reports its latest quarterly earnings after the bell on Tuesday.

Netflix missed subscriber addition estimates for the first time in more than a year last quarter, causing shares to tumble 5 percent. Investors are waiting to see if it regain momentum.

  • Estimated revenue: $4 billion, per a Refinitiv consensus estimate
  • Estimated earnings per share (EPS): 68 cents, according to a Refinitiv consensus estimate
  • Estimated domestic subscriber additions: 673,800, per FactSet
  • Estimated international subscriber additions: 4.46 million, according to FactSet

Analysts from Morgan Stanley, Goldman Sachs and Raymond James cut their price targets on Netflix ahead of its earnings report, due to a combination of the strength of the dollar, rising interest rates and increasing expenses for the company.

Still, Netflix shares are up 78 percent this year, as consumers continue to cut the cord. EMarketer projects more than 60 percent of the U.S. population will be using over-the-top services like YouTube, Netflix, Amazon, Hulu and HBO Now by the end of the year, an increase of 3 percent from a year earlier..

Disclosure: CNBC parent company NBCUniversal is an investor in Hulu.

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