Pacific Crest Comments on Netflix (NFLX) After Subscriber Guidance Cut

Analysts at Pacific Crest made comments on Netflix (Nsdaq: NFLX) after the company cut its subscriber guidance this morning, sending shares sharply lower.

Pacific Crest said they would wait for a better entry-point, citing the pricing change, loss of Starz content and its international expansion.

The firm said the lower DVD subscriber forecast suggests higher than anticipated 3Q churn will drive majority of likely EPS impact. However, the firm said Netflix still has considerable competitive advantages.

The analyst said CoinStar (Nasda: CSTR) will be the biggest beneficiary and they see a more than 13c/share per quarter long-term impact on the Netflix DVD subscriber attrition.

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