Netflix Inc. (NASDAQ: NFLX)
Shares of Netflix, Inc. jumped more than 6% during after-hours trading on Monday after the company reported better-than-expected subscriber additions and profits. Netflix reported its first quarter earnings for fiscal 2018 in which it added far more subscribers during the period as compared to what analysts had been expecting.
The subscriber growth sets the streaming company up for a promising outlook in the next quarter. Following the earnings report, shares of the company climbed by more than 6% in extended trading session on Monday after having ended the day at $307.78.
NFLX Earnings & Outlook
Netflix now has 125 million subscribers after gaining 7.4 million more during the first quarter of 2018. The 7.4 million figure represents an increase of about 50% from a similar period in 2017.
A vast number of Netflix’s new subscribers (5.5 million) are not from the US, indicating that the company is continuing to gain more ground in foreign markets. During first quarter of fiscal 2018, the company released 14 original movies, 18 original new series, 11 new seasons for continuing original series.
Adjusted earnings per share for the quarter was $0.64 while revenue reached $3.7 billion. Wall Street expected the company to post a revenue of $3.69 billion and an EPS of $0.63. Total streaming rose to 7.41 million during the quarter compared to the 6.5 million figure that analysts had predicted.
Netflix’s CEO Comments
Netflix Chief Executive Officer Reed Hastings made the following comments when he appeared on a YouTube interview shortly after his company’s earnings report: “We are continuing to invest in content marketing content. The breath of content that we have got going is really remarkable. Some of the local shows that we are showing around the world are U.S investor-based.”
Netflix, Inc. Company Profile
Netflix, Inc. was founded in 1997 by Reed Hastings and Marc Randolph. Netflix, Inc. The company, which is based in is Los Angeles, is a leading online streaming company with 120 million subscribers in more than 190 countries.
The subscribers enjoy more than 140 million hours of movies and TV shows daily, which includes feature films, documentaries and original series. Subscribers can stream as much as they wish, anywhere, anytime, on almost any screen that is connected to the internet. Members can pause, resume and play videos, all without commitments or commercials.
Its subsidiaries include Netflix K.K., Netflix Studios, LLC., Netflix International B.V., Netflix Entretenimento Brasil LTDA, Netflix Streaming Services, Inc., and NetflixCS, Inc. The company’s segments of operation are as follows: Domestic DVD, International Streaming, and Domestic streaming. Netflix competes with Amazon.com Inc., Hulu, 21st Century Fox, Walt Disney Co., NBCUniversal, Time Warner Inc., and HBO. –Reuters
