Netflix, Inc. (NFLX) Stock Jumps Over 10% Following Earnings Report
Wall Street’s third quarter expectations for Netflix, Inc. (NASDAQ:NFLX) were high, but the company managed to beat them. After hours, Netflix is trading at over 10% due to the positive results. Netflix’s shares are up 440% in the past year.
Analysts were expecting Q3 earnings nearly to quadruple over this year. Netflix’s revenues were at $1.1 billion, which was in line with estimates. Netflix reported Q3 earnings of 52 cents a share, which is above the 49 cents that analysts that were polled by Thomson Reuters were expecting.
For the current quarter, Netflix, Inc. (NASDAQ:NFLX) predicted earnings of 47 cents to 73 cents per share. This is well above the 46 cents per share that Wall Street expected.
Growth of Subscribers
Netflix CEO Reed Hastings said that they have added nearly 1.3 million new American subscribers during the third quarter. This is near the top range of the 690,000-1.49 million range that Netflix predicted in July. Netflix added 1.44 million new subscribers overseas. Now Netflix has over 40 million subscribers. However, Netflix warned that there was a surge of free-trial signups in Latin America, which artificially boosted their international additions figure.
One of the major factors for Netflix’s growth was original content. Netflix launched a new season of Arrested Development. They also launched new shows House Of Cards and Orange Is The New Black. These shows helped Netflix receive 14 Emmy nominations. House of Cards won 3 of those nominations.