But the so-called ‘Adjustments to reconcile net income to net cash’ aren’t a true picture of Netflix’s operational health?
Take a look at the additions and subtractions to net income Netflix factors in here before pinning down a precise operating cash flow figure.
Ditto for operating cash flow, which rolled in at a negative $343 million for the first quarter of 2017.
That is what Netflix is doing with its net income reconciliation — technically.
Indeed, it’s difficult to see what’s become a multi-year trend of expenses and liabilities — and cash flow reconciliations — taking a different direction in the foreseeable future.
Earnings Preview: Netflix Continues Its International Push – Netflix, Inc. (NASDAQ:NFLX)
In the last four quarters, NFLX stock has experienced substantial price volatility around its earnings releases.
NFLX is expected to add 5.3 million subscribers this quarter, down from 7.1 million subscribers last quarter and the 6.7 million added in the same quarter last year.
Power said he expects the company to add 3.7 million international subscribers this quarter, the same as company guidance.
Last quarter, its stock jumped when the company’s earnings beat expectations and subscriber growth came in much higher than analyst estimates.
FIGURE 1: NFLX COMPANY PROFILE.
Netflix 2017 Will Be Very Different Than Netflix 2016, But The Stock Is Still A Buy And Hold – Netflix, Inc. (NASDAQ:NFLX)
Netflix stock was steady at $117 prior the announcement but rose to almost $125 in the week following it.
In the year and a half or so I have been writing on Seeking Alpha, my two best recommendations have come on Netflix (NASDAQ:NFLX) stock and Sprint (NYSE:S) stock.
However, Netflix is approaching a year of transition, and the dynamics I used to derive accurate buy recommendations may no longer hold for Netflix.
Some shortfalls will be inevitable in one or two quarters, reinforcing its status as a buy and hold stock.
I based these conclusions on the presence of two new forces in Netflix subscriber patterns that had far more influence over the 2016 results than they did over any previous ones.
collected by :John Locas