Netflix Shares Rise 12% On Strong Q4 Results
Netflix, Inc. (NASDAQ: NFLX) reported fourth quarter 2014 financial results Tuesday. Total revenue came in at at $1.483 billion, inline with estimates of $1.48 billion and above the $962 million reported in the prior year period.
Q4 EPS was $1.35 which benefited from a $0.63 tax accrual release related to a resolution of a tax audit. Adjusted for the benefit, EPS was $0.72. The average analyst estimate was $0.45.
According to the company’s shareholder letter, Netflix added a record 13.0 million new members, compared to 11.1 million in 2013, bringing the global total to 57.4 million members.
In Q4, the company added 4.33 million members vs 4.07 million in the previous year period and expected to end Q1 2015 with 61.4 million global members.
“It is increasingly clear that virtually all entertainment video will be Internet video in the future. We believe there is big growth ahead in the US market for Netflix, even if we may not get there in a straight line of 6 million annual net adds. We’ll continue to improve our content, our marketing and our service, to eventually achieve “must have” status in most households,” according to CEO Reed Hastings and CFO David Wells.
Netflix traded at $390.86 in the after-hours session, up 12.1 percent.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.