How Netflix Knocked It Out of the Park in Q2
Netflix, Inc. (NASDAQ: NFLX) reported its second quarter financial results after the markets closed on Monday. The online streamer said that it had $0.15 in earnings per share (EPS) and $2.785 billion in revenue, compared with consensus estimates from Thomson…
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Netflix, Inc. (NASDAQ: NFLX) reported second quarter financial results after markets closed Monday. The online streamer said that it had $0.15 in earnings per share (EPS) and $2.785 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $0.16 in EPS and $2.76 billion in revenue. The same period from last year had $0.09 in EPS and $2.11 billion in revenue.
For the second quarter, global net adds totaled a Q2-record 5.2 million (vs. forecast of 3.2 million) and net additions increased 5% sequentially, bucking historical seasonal patterns. For the first six months of 2017, net adds are up 21% year-on-year to 10.2 million.
The U.S. segment had a total of 1.07 million net additions for the quarter, while the international segment pulled in 4.14 million net adds. At this point, the international segment now accounts for 50.1% of the total membership base.
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In terms of guidance, the company expects to see $0.32 in EPS and $2.97 billion in revenue for the third quarter. At the same time, Netflix expects to see 4.40 million in net additions for the quarter, making a total of 108.35 million memberships.
On the books, cash, cash equivalents, and short-term investments totaled $2.2 billion at the end of the quarter, compared with $1.7 billion at the end of the previous year.
Second quarter free cash amounted to -$608 million versus -$254 million in the year ago quarter and -$423 million in the first quarter of 2017. Netflix anticipates free cash flow of -$2.0 billion to -$2.5 billion for the full year 2017.
Shares of Netflix closed Monday at $161.70, with a consensus analyst price target of $160.68 and a 52-week range of $84.50 to $166.87. Following the release of the earnings report, the stock was up nearly 9% at $175.90 in the after-hours trading session.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
