Netflix Inc | $NFLX Stock | Shares Soar On Impressive Q3 Numbers

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Netflix

Netflix Inc (NASDAQ: NFLX)

 

Shares of Netflix gained more than 12% in post market trading on Tuesday after the company reported solid subscriber growth during its fiscal third quarter.

That was a welcome change from the massive loss the stock experienced after announcing disappointing forecast and weaker subscriber numbers during for its second quarter.

Streaming revenue rose 36 percent from the earlier-year quarter, but international revenue slipped to $90 million. Shares in Netflix have gone up 80.5% since the beginning of the year, the fourth-best of any S&P 500 component.

NFLX Earnings & Outlook

Netflix

The company reported net additions of 6.96 million subscribers during the quarter, surpassing Wall Street estimates of 5.32 million and its own projection of 5.0 million. Net income jumped to $403 million, or $0.89 per share, compared with $129.6 million, or $0.29 per share, in the same quarter a year ago.

Analysts polled by FactSet had called for third quarter earnings $0.68 per share. Net revenue jumped to $4.0 billion, up from $2.985 billion in the year-ago quarter and ahead of analysts’ estimate of $3.986 billion.

Looking ahead, the company expects fourth-quarter adjusted earnings of $0.23 per share, compared to analysts’ consensus of 0.50 per share. The company also sees subscriber net additions of 9.4 million during its fourth quarter.

Netflix Company Comments ​

​In a letter to shareholders, the company had this to say about its film and TV studio, “It was just two years ago when we began building the third category: a film and TV studio within Netflix. Some of our notable owned-titles in addition to ​Stranger Things
​ include​: Big Mouth, The Ranch, ​Bright, Godless, ​The Kissing Booth, ​3%, ​Dark, ​Sacred Games and ​Nailed It.”

“In addition to reducing our reliance on outside studios, this initiative provides us with greater control over the content we create (e.g., long term global rights), the ability to strengthen title-brand-love and franchise value (like consumer products) and potentially lower costs (as we can avoid the markup 3rd party studios charge us). To do this, we’ve had to develop new capabilities to manage the entire production process from creative support, production planning, crew and vendor management to visual effects, to name a few.” 

Netflix Inc Company Profile

Netflix, Inc. operates as an Internet subscription service company, which provides subscription service streaming movies and television episodes over the Internet and sending DVDs by mail. It operates through the following segments: Domestic Streaming, International Streaming, and Domestic DVD.

The Domestic Streaming segment derives revenues from monthly membership fees for services consisting solely of streaming content to its members in the United States. The International Streaming segment includes fees from members outside the United States.

The Domestic DVD segment covers revenues from services consisting solely of DVD-by-mail. The company was founded by Marc Randolph and Wilmot Reed Hastings Jr., on August 29, 1997 and is headquartered in Los Gatos, CA. – CNN Money

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