Netflix(NFLX) shares are moving to the top of the queue.
Shares of the company are up about 10% in late trading, to $391, after reporting third-quarter earnings that beat Street views, and importantly reporting that it added more subscribers than expected.
Netflix earned $31.8 million, or 52 cents a share, on revenue of $1.11 billion. Street consensus was for earnings of 48 cents a share on sales of $1.1 billion. A year ago, the company earned 13 cents a share on revenue of $905 million.
Even more importantly than the earnings, the company reported subscriber growth numbers ahead of Street views; the critical component for Netflix is to continue adding subscribers, as a payoff for the all the money the company’s spending on marketing, technology, and programming. In the third-quarter, the company added 1.29 million U.S. subscribers, boosting its total to 31.09. Street consensus was that the company would add about 1.1 million subscribers.
International growth was strong as well, with 1.44 million new subscribers overseas; the Street expected roughly 950,000. There are now 9.19 million subscribers overseas.
For the fourth-quarter, the company expects total U.S. streaming subscribers will reach 32.7-33.5 million, with international members at 10.1-10.9 million.
The company will be hosting its conference call, via its own streaming service and its YouTube channel, at 5 p.m. Eastern time.
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