USB Piper reiterates outperform on Netflix (NFLX).
Analyst Safa Rashtchy says better than expected subscriber growth leads him to expect revenue upside of about $1 million above his $35.6 million second quarter estimate. He notes the second quarter earnings per share could surpass his breakeven estimate to $0.01-$0.02.
He also says his estimates do not account for possible lower than expected subscriber acquisition costs (the company's main profitability leverage point). Rashtchy keeps his $0.40 2002 loss and $0.19 2003 loss estimates pending a full second quarter earnings call on July 24, but expects to raise estimates for the third quarter and beyond as his third quarter subscriber estimates are already surpassed.