Netflix will report earnings after the close tomorrow
The shares of Netflix Inc (NASDAQ:NFLX) are virtually flat ahead of the streaming company's earnings report, due out after the close tomorrow, April 20. The security was last seen up 0.1% to trade at $547.20. In fact, the equity has traded in a fairly narrow channel between its $540 and $560 levels for most of April, with the upper level keeping the equity from rallying back toward its January peak of $593.29. Despite this ceiling, NFLX sports a year-over-year lead of 29.6%.
Analysts are mostly optimistic ahead of the event. Of the 31 in coverage, 24 call NFLX a "buy" or better, compared to seven "hold' or worse ratings. Meanwhile, the 12-month consensus price target of $622.74 is a healthy 13.8% premium to current levels.
The options pits have been generally bullish, too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Netflix stock sports a 10-day call/put volume ratio of 2.44. This ratio stands higher than 91% of readings from the past year, meaning these traders are picking up calls at a quicker-than-usual clip.
Looking back at its past eight earnings reports, NFLX tends to drop lower during its post-earnings session, though it notched an impressive 16.9% after its latest quarterly report in January. The equity has averaged a next-day move of 6.3% over the past two years, regardless of direction, though this time around the options pits are pricing in a much bigger 11.3% move.