Netflix will report fourth-quarter earnings after the close on Tuesday, Jan. 21
Netflix Inc. (NASDAQ:NFLX) is scheduled to announce its fourth-quarter earnings after the market closes on Tuesday, January 21. The streaming giant is looking to follow up its October post-earnings surge with another strong performance.
Historically, Netflix stock has had a mixed bag of post-earnings reactions, finishing four out of eight next-day sessions higher over the past two years. After its October report, the stock soared 11.1%. This time around, options traders are pricing in a 9.4% move for NFLX, regardless of direction, slightly more than the 8.6% average post-earnings swing over the last eight reports.
Shares are up 1% to $856.50 at last glance, receiving a boost from an upgrade to "buy" from Seaport Research Partners. BMO and Oppenheimer have chimed in with price-target hikes of their own to $1,000 and $1,040, respectively, from $825 and $1,065. Despite the 25% gain in the past three months and an all-time high of $941.75 on Dec. 11, Netflix stock is down 3.8% year-to-date.
An outstanding earnings report could shake loose some of the analysts on the fence. Of the 41 brokerages covering Netflix, 17 maintain a "hold" or worse rating.
Options traders are showing a preference for puts ahead of earnings. NFLX's 10-day put/call volume ratio of 1.02 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 90th percentile of its annual range. This indicates an unusually high demand for puts in the last two weeks, and these traders could be forced to capitulate in the event of a post-earnings move to the upside.