Description: Netflix‘s earnings per share exceeded the analysts’ estimates in its recent report on the first quarter. Conversely, the number of new subscribers was below what analysts had predicted. Overall, Netflix seems profitable with net income up to $178 million, an increase of about $150 million. The stock has been doing quite nicely, with the share price up close to 20% in 2017.
Date: April 17, 2017
1) Are you a Netflix subscriber? Why?
2) What can you find out about earnings per share and the price-earnings ratio in Wiley’s Kimmel, Financial Accounting: Tools for Business Decision-Making, Sixth Canadian Edition?
3) Why is the Earnings per Share ratio a tricky one to use in evaluating a company’s ratios?