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NFLX Beats Q4 EPS On Tax Gain, Misses Revenues, Guides Lower, Cash Burn Soars, Reports $9.5Bn In Off-Balance Sheet Obligations
All algos that were short NFLX into earnings were just brutalized and stampeded into an epic short-covering squeeze when the company announced Q4 EPS of $1.35, nearly double the $0.72 expected. However, as usual, there is more here than meets the eye, epsecially when considering that NFLX Q4 revenue actually missed expectations of $1.49Bn, printing $1.48Bn. So how did NFLX smash EPS? Because as anyone who actually read the release before trading the stock would find, NFLX "Q4'14 Net Income/EPS includes a $39m / $0.63 benefit from a tax accrual release related to resolution of tax audit." Subtract that from the reported EPS and one gets $0.72. Right on top of expectations.
And then there is Q1 guidance, which NFLX said would be $0.60, not only lower than a year ago, but also substantially below expectations of $0.78.
So net-net: a quarter that was in line on the bottom line, a miss on the top line, and a business which may well be slowing down.
Finally, here what investors will soon be paying very close attention to: Free Cash Flow. At ($78) million, this was the worst quarter for the company in years.
And as a bonus: NFLX reported what its off-balance sheet streaming content obligations are. At $9.5 billion (yes, with a B), these are $600 million higher in just one quarter, up $2.2 billion from a year ago, and just under half of its entire market cap!
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and the shorts get squeezed........hehehhehe watta joke
CNBS hysterically happy for this "huge beat"
Was this pre or post menopausal GAAP contested unearned make believes and assorted crap?
Am I crazy or is the shit really up 15.5% now including after hours trading?
If ya' got a 100 shares this getcha a free prostate massage? Get one bring Steve Liesman for free?
BLAAAAAAARRRARARARAAAAAGGGGGHHHHH!
what a fucken joke this stock market
Reggie Middleton says if you have Netflix, you can watch, like, 10,000 movies every month.
Speaking of Reggie,
We cornholed some short NFLX folks...
"$9.5Bn In Off-Balance Sheet Obligations"
What's a few Billion between investing buddies? What's 100 or 200 Trillion between gubmint friends? What's 600 or 800 Trillion in re-hypothecated derivatives between TBTJ bankstas? I mean it's only fiat paper, right?
These earnings were..... Blockbuster......
Oops....
why does everyone say CNBS? Was there a memo?
"I'm Jim Cramer, and I have a boner."
Relax! Lehman Brothers is fine!
FUCK YOU YELLEN
ICE - DO WHAT YOUR RELEASE SAYS AND SHUT OFF THOSE FUCKING HFTs
lol, My Mom just said what joke NFLX and all those other USB plug<>ins are.
She said the shit was repetitive/
+12 % after hours..What a fucking joke!
Yea! In todays world this is what you want, super bidness! Double plus, plus good!
This a screaming buy!
Happy happy joy joy.
It's got electrolyes!!!!
Companies almost always remove "one-time" losses from non-GAAP earnings. But one-time gains are almost never removed.
OT: No gunpowder traces were found on the Argentinian prosecutors hands:
http://buenosairesherald.com/article/179980/no-gunpowder-traces-found-on...
IBM revenue down 11 straight quarters ..... 'beats' anyway !
http://www.bloomberg.com/news/2015-01-20/ibm-earnings-beat-analysts-estimates-forecast-meets-low-end.html
All investors need do is liquidate (talking advantage of artificially cheap puts) to buy gold. TBTJ are pinned... it is time to exterminate the parasites...
the sad thing for these shorts ... in (less rigged to boot) casinos you get free drinks
yeah, yeah ... water downed and plan to leave a tip if you expect to see them again ... but still ...
time for Chanos to come on CNBS and tell us all how much moar $$$ he made.
winning!
Well, in an economy where 23% of the adult population is unemployed, of course online movies (and video games) and the companies that make/provide them will be beating expectations. I'll bet beer companies are doing well too, no? What the hell else are all those unemployed folks gonna do?
Said this on CNBC this thing is an acct gimick and stil is as the games continue and the lib hoards love it still,,,,,,
CNBC? You mean CNBS.
BTW, I caught the "net income " vs "EPS" line.
BBq and take a nap. The ECB is sure to be a "let down"
The BoJ policy meeting will be good.
Off balance sheet? I guess we learned nothing with Enron?
With a screen name like that I would think you would know they learned a lot from Enron and Arthur Andersen.
Who knew algos think like mupppets and surfs!
Crappy streaming movies, poor management and slow streaming are some of their problems.
up $63 pre market