Netflix spikes 11% after global subscriber growth blows away forecasts
- Shares of Netflix rose as much as 11% in post-market trading after the company reported international new subscriber additions in the third quarter that beat Wall Street forecasts.
- The streaming giant also reported US subscriber additions that were in line with estimates. The prior quarter Netflix saw a contraction in domestic subscribers.
- The company also reported earnings per share that surpassed expectations.
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Netflix's stock gained as much as 11% after reporting international new subscriber additions in the third quarter that beat Wall Street forecasts.
The streaming giant also reported earnings per share that handily exceeded estimates.
Here are the key numbers from Netflix's third-quarter earnings report:
Revenue: $5.244 billion, compared to $5.248 billion expected by analysts
Earnings per shares: $1.47, versus $1.04 forecasted by analysts
Net income: $665 million, compared to $573.75 million estimated by analysts
Net international subscriber additions: 6.26 million, compared to 6 million estimated by analysts
Net subscriber additions: 6.8 million, compared to the range of 6.8 million to 7 million expected by Wall Street
Netflix is forecasting global subscriber growth of 7.6 million for the fourth quarter, implying about 26.7 million total net additions for the year. That's slightly below last year's 28.6 million.
The company also addressed the impact of increased competition within the streaming space on its guidance.
"The launch of these new services will be noisy," the company said in a press release. "There may be some modest headwind to our near-term growth, and we have tried to factor that into our guidance."
Leading up to the earnings report, investors and analysts were concerned about the company's ability to add new subscribers following a surprising decline in the US during the second quarter.
Shares of Netflix are about 7% year-to-date through Wednesday's close.