Buffalo Wild Wings’ [stckqut]BWLD[/stckqut] second quarter profits were down more than 9 percent and fell short of stock analysts’ estimates, as the restaurant chain coped with higher labor and chicken wing costs.

The Golden Valley-based company, known for its wings, beer and sports motif, posted second quarter net earnings of $21.5 million or $1.12 per share, down from $23.7 million or $1.25 a year ago.

Stock analysts polled by Thomson Reuters, on average, were expecting per share profits of $1.26.

Buffalo Wild Wings announced its earnings after the stock market closed Tuesday. On Wednesday, shares were up more than 13 percent in midday trading.Buffalo Wild Wings recorded sales of $426.4 million, up 16.5 percent over a year ago but short of the $429.3 million expected by analysts.

However, same-store sales, a key financial gauge, rose 4.2 percent over a year ago at stores owned by Buffalo Wild Wings and 2.5 percent at franchised stores — a better performance than analysts expected. Comparable sales take into account newly opened and closed stores.

Source: Buffalo Wild Wings shares soar despite 2Q miss – StarTribune.com

Company name Netflix, Inc.
Stock ticker NFLX
Live stock price [stckqut]NFLX[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $164.06
Target stock price (averages with growth) $181.69
Target stock price (averages with no growth) $82.92
Target stock price (manual assumptions) $163.84

The following company description is from Google Finance: http://www.google.com/finance?q=nflx

Netflix, Inc. is a provider of Internet television network. The Company has over 57 million streaming members in over 50 countries. Its members can watch more than two billion hours of television (TV) shows and movies per month, including original series, documentaries and feature films on Internet-connected screen. The Company has three operating segments: Domestic streaming, International streaming and Domestic DVD. The Domestic and International streaming segments derive revenues from monthly membership fees for services consisting of streaming content. The Domestic DVD segment derives revenues from monthly membership fees for services consisting of DVD-by-mail. Its members can play, pause and resume watching, all without commercials or commitments. Additionally, in the United States, its members can receive DVDs to their homes. The Company offers streaming service both domestically and internationally.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Netflix, Inc.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Netflix, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $107.34
  • Growth: 0.2
  • Current EPS (TTM): $0.44
  • P/E: 241
  • Future EPS Calc: $1.09
  • Future Stock Price Calc: $263.86
  • Target stock price: $163.83

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I hope that this makes you a Confident Investor.