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Netflix's Big Q4 Beat Pushes Stock To New Highs, Plans To Spend Nearly $8 Billion On Content In Q1

Netflix's Big Q4 Beat Pushes Stock To New Highs, Plans To Spend Nearly $8 Billion On Content In Q1

Netflix, Inc. (NASDAQ: NFLX) shares are surging after posting a fourth quarter sales beat and issued strong first quarter guidance.

The streaming giant reported fourth quarter GAAP EPS of 41 cents. Sales came in $60 million above estimates at $3.286 billion. Q4 net streaming adds totaled 8.33 million versus 6.34 million estimates.

Netflix sees first quarter EPS of 63 cents, against a consensus estimate of 56 cents. Sales are expected to $3.686 billion and company management is estimating global net adds of 6.35 million in the upcoming quarter.

See Also: Wall Street Previews Netflix's Q4 Earnings: Rising Subscriber Numbers Drive Bullish Projections

Q4 Highlights

  • Netflix posted fourth quarter adjusted EBITDA of $313 million, up $102 million year-over-year;
  • 1.98 million net additions in the US;
  • International streaming saw 6.36 million net additions; and
  • $7.5 billion-$8 billion is expected to be spent on content in Q1.
  • Netflix was thrilled with its big-budget exclusive film "Bright," featuring Will Smith.

“Our largest investment in original films to date, Bright, a fantasy action movie starring Will Smith, was a major success and drove a notable lift in acquisition. In its first month, Bright has become one of our most viewed original titles ever. We’re thrilled with this performance and are planning a sequel as well as additional investment in original films.”

Netflix was up nearly 10 percent in after-hours trading, sitting around $249 per share. That move pushed its market cap to $100 billion for the first time ever.

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Image credit: Matthew Keys, Flickr

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