Despite high projections, some analysts are cautious about Netflix ahead of earnings

Key Points
  • Estimated earnings per share: 79 cents per a Thompson Reuters consensus estimate.
  • Estimated revenue: $3.94 billion
  • Estimated subscriber additions: 5.11 million subscribers internationally and 1.23 million subscribers domestically, per FactSet and Street Account
Reed Hastings, chief executive officer of Netflix
Patrick T. Fallon | Bloomberg | Getty Images

It may be a bumpy road for Netflix as the streaming giant prepares to report its latest quarterly earnings.

Netflix is scheduled to report its Q2 earnings after the bell on Monday. It is expected to post earnings per share of 79 cents and revenue of $3.94 billion, per a Thompson Reuters consensus estimate. The company is also projected to add 5.11 million subscribers internationally and 1.23 million subscribers domestically per FactSet and Street Account, slightly more than its guidance.

Despite the upbeat projections, some analysts are tempering expectations about Netflix. Mark Tepper, president and CEO of Strategic Wealth Partners, told CNBC he is concerned about the stock's ability to maintain huge growth, especially because it has gained more than 100 percent year to date.

There's also increased competition from other streaming companies, such as Hulu and Amazon Prime, Tepper added. AT&T is also rumored to be developing HBO into a Netflix competitor, though some insiders said the company is more focused on investing in premium content rather than massive amounts, according to Vanity Fair. Disney is slated to launch its streaming service in 2019.

Buckingham downgraded Netflix due to "underwhelming" original content this past quarter, as well as more media companies pulling their licensed content from the platform. UBS also downgraded Netflix because of its high valuation.

Note: CNBC parent company NBCUniversal is an investor in Hulu.

Chart points to trouble for Netflix