Netflix Q2 Earnings Beat Estimates, Shares Jump

Shares of

surged more than 10 percent in after-hours trading after the company reported better-than-expected earnings for its second quarter. The Los Gatos, California-based company posted quarterly net income of $26.3 million, or $0.06 per share, compared to $71 million, or $0.16 per share, in the year-ago period. Its revenue climbed to $1.64 billion from $1.34 billion. However, analysts were expecting a profit of $0.04 per share on revenue of $1.65 billion. The average estimate among 189 Estimize users was for earnings of $0.06 per share and revenue of $1.65 billion. During the quarter, the company added 3.28 million net subscribers worldwide, versus its own outlook of 2.50 million. Netflix added 0.9 million members in the US, while it gained 2.4 million members internationally. For the current quarter, the company expects a profit of $0.07 per share, versus analysts' estimates of $0.05 per share. Netflix shares climbed 10.33 percent to $108.27 in the after-hours trading session.