Diamonds and Dogs

10/12/17

Netflix (NFLX) higher on an upgrade. Netflix is up a percent to a new high thanks to an upgrade at Stifel. The analyst forecasts 753k domestic net streaming subscriber additions in 3Q, narrowly below Street consensus of 800k and in-line with the company's forecast of 750k. For international streaming, they estimate 3.65mm net adds, in-line with consensus (3.69mm) and company guidance (3.65mm). The analyst estimates 30% year over year revenue growth in 3Q (in-line with guidance of 29.6%). Netflix continues to benefit from last year's price increase. On the profitability side, they expect an operating margin of 6.8% in third quarter.

J. Jill (JILL) is not doing well. The women's apparel retailer is down 50% after cutting its outlook for the third quarter because of lower-than-expected sales. The company forecast adjusted earnings of 8 cents to 10 cents a share for the third quarter, down from a previous forecast of 18 cents to 20 cents a share. J.Jill also expects third-quarter same-store sales to decline by 3% to 5%. Analysts surveyed by FactSet had estimated earnings of 19 cents a share with a 7.4% increase in same-store sales.