Ticker Shock: Netflix Shines; Dupont, Dow Chemical Looking Toxic

So, the Senate confirmed Timothy Geithner. I suppose that’s good news in that we now have a Treasury Secretary. Quick question though: Does that mean I don’t have to pay my taxes?

Some Asian markets were closed for a holiday, however the Nikkei was open for business and closed almost 5% higher. European stocks were showing me some red earlier this morning, and here in the US we're currently trading higher.

Here's what I’m looking at this morning:

Netflix (NFLX):
 Renting videos these days instead of going out to the bar?

I’m guessing you have been, given the video company’s fourth-quarter results.

In the period ended December 31st, the company earned $0.41 a share on an adjusted basis. Not bad, considering the estimate I’m seeing was for $0.34.

Regarding subscribers, according to the release:

“Netflix ended the fourth quarter of 2008 with approximately 9,390,000 total subscribers, representing 26% year-over-year growth from 7,479,000 total subscribers at the end of the fourth quarter of 2007 and 8% sequential growth from 8,672,000 subscribers at the end of the third quarter of 2008.”

As far as the outlook going forward, it’s looking for $1.43 to $1.59 for the full year ’09, which is good news. I say that because it’s essentially in line with the $1.49 estimate I’m seeing.

My eyes shot to this line within the release as well: “The Company also is announcing today that its Board of Directors has authorized a stock-repurchase program for 2009. Based on the Board's authorization, the Company anticipates a repurchase program of up to $175 million.”

In a nutshell: Good quarter, encouraging outlook, and that stock-repurchase program certainly makes my ears perk up. I can’t help but think the shares close to the upside in today’s session. One thing I want to point out is that the shares currently trade at a little over 20 times the current year estimate by my math. That’s not cheap.

Texas Instruments (TXN):
 The big name chipmaker was out with its fourth-quarter numbers after the bell yesterday.

Excluding charges, it turned in $0.21, which was better than the $0.12-a-share estimate that was out there.

On the top line it took in almost $2.5 billion. Not great when compared to the more than $3.5 billion it in turned in during the comparable period the year before, but it was north of the $2.37 billion estimate I see.

Unfortunately, the story doesn’t end there. For the first quarter, it offered up a range: It expects an $0.11 loss to a $0.03 gain. Per the release:  “The EPS estimate includes $0.03 per share resulting from $50 million of estimated restructuring charges.”

In any case I’m not too crazy about it because the estimate I’m seeing is for $0.04.

Long-term, I like the company’s chances, but near-term I’m staying clear. I think there are better opportunities out there.