BUZZ-Preview: Netflix shares decline ahead of earnings report, growth outlook in focus

October 20 - ** On Tuesday, ahead of the upcoming quarterly earnings release after the market close, Netflix NFLX.O shares fell 0.8% to $69.28, as investors closely monitor the company's growth prospects and content strategy under its new management team

** According to a forecast by London Stock Exchange Group (LSEG), the streaming giant's third-quarter revenue is expected to grow about 12% year-on-year to $12.87 billion, with adjusted earnings per share at $0.82, up from $0.59 a year earlier

** In July, Netflix disappointed Wall Street (link) with its third-quarter outlook and said it would reduce disclosure of watch hours

** Prior to this earnings release, Netflix had appointed former Disney DIS.N executive Peter Rice as its new chief content officer and cut about 6% of its workforce. Currently, Netflix is facing intense competition from traditional rivals as well as free platforms such as YouTube and TikTok (link)

** So far this year, the company's share price has declined about 26%, while the Nasdaq Index .IXIC has risen about 14%; according to LSEG data, its recent forward price-earnings ratio is 19, well below the five-year average of 31

** Out of 51 analysts, 37 have given the stock a "strong buy" or "buy" rating, 12 have rated it as "hold," and 2 recommend "sell"

** The median target price is $90, down from $95 a month ago and $100 on July 20

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