Netflix Shares Skyrocket On Strong Results, Guidance; Added 5.2 Million Subscribers Globally In Q3
Shares of Netflix, Inc. (NASDAQ: NFLX) traded up more than 20 percent in Monday’s after-hours session, following the announcement of the company’s Q3 results.
Earnings of $0.12 per share came in $0.06 ahead of the Street’s consensus, while revenue of $2.29 billion beat estimates of $2.28 billion.
Total U.S. streaming members hit 47.5 million, and international streaming members, 39.2 million. Total streaming subs reached 86.74 million, with 3.57 million net additions.
For Q4, management said it expects EPS of $0.13, well above expectations for $0.07, and total streaming sales of $2.344 billion. In addition, the team guided for 5.2 million in global net additions, on 1.45 million in U.S. net adds, and 3.75 million international net adds.
Netflix is trading around $119 in Monday's after-hours session, up about 18 percent.
“We will face a tough international net adds comparison in Q1'17 because of the initial membership surge in Q1'16 tied to the launch of 130 additional territories,” management added.
Netflix original content is continuing to resonate with subscribers as the company zones in as a key competitor to Time Warner Inc (NYSE: TWX)'s HBO.
"Stranger Things," the streaming service's newest original, has gained a lot of traction on social media, according to TickerTags, outpacing all of the property's other hit shows in terms of social media mentions.
Compared with other Netflix originals in the first 90 days of its release, the thriller's social mentions are 373 percent higher than "Jessica Jones", 340 percent higher than "Making A Murderer", 289 percent higher than "Fuller House", and 201 percent higher than season 2 of "Daredevil."
Brett Hershman contributed to this report.
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