Netflix (NFLX) Stock Surges on Subscriber Growth, Earnings
Shares of Netflix Inc. (NFLX) closed up +54.99 or +16.48 percent to $388.72 per share on Thursday, after the company announced earnings on Wednesday afternoon. The stock rallied sharply in after-hours trading as the company reported earnings of $48.4 million or $0.79 per share for the quarter, significantly higher than the $0.13 per share the company made in last yearâ s fourth quarter and 13 cents better than the analyst consensus of $40.8 million or $0.66 per share.
Los Gatos, California based Netflix Inc. is an Internet subscription service offering subscribers unlimited streaming television shows and movies that can be watched on television sets, computers or on mobile devices. The company currently operates in 41 countries in North and South America, the United Kingdom, the Caribbean, Scandinavia, the Netherlands, and Iceland. Netflix full year net income came to $112.4 million, versus the Wall Street consensus of $103.4 million, while earnings per share came to $1.85, also, well above estimates. Revenue for the year was in line with expectations at $4.4 billion. The big number for Netflix was the amount of subscribers the company added in the fourth quarter, domestic membership increased by +2.33 million, which was 14 percent more than the company added in the same period one year ago. Internationally, Netflix gained +1.7 million subscribers in the quarter, including Canada and Latin America. The quarterly increase pushed international subscriptions over the 10 million mark for the first time. In all, Netflix finished 2013 with 44 million members. Netflix Chief Executive Officer, Reed Hastings in a conference call after the earnings release, said that, â
Published on Jan 24, 2014
By Jay Hawk