Netflix Does It Again With Q3 Earnings
Netflix Inc. (NASDAQ: NFLX) released its most recent quarterly results after the markets closed on Monday. The online streaming giant posted $0.29 in earnings per share (EPS) and $2.985 billion in revenue, which compared with consensus estimates from Thomson Reuters of $0.32 in EPS and $2.97 billion in revenue. The third-quarter of last year had $0.12 in EPS and $2.29 billion in revenue.
Global streaming revenue in the quarter rose 33% year over year, driven by a 24% increase in average paid memberships and 7% growth in ASP.
During this quarter, Netflix added 5.3 million memberships globally, a record for the quarter and an increase of 49% from last year. The firm is continuing to benefit from its original series and films, as well as the adoption of internet entertainment across the world. Relative to its guidance of 4.4 million net adds, Netflix under-forecasted both U.S. and international acquisition. Year to date, net adds of 15.5 million are up 29% from last year.
For the fourth quarter, the company is predicting global net adds of 6.30 million (1.25 million in the United States and 5.05 million internationally) versus 7.05 million in the year ago quarter, which was Netflix’s all-time high for quarterly net adds.
In terms of the outlook for the fourth quarter, Netflix expects to see $0.41 in EPS and $3.27 billion in revenue. The consensus estimates call for $0.33 in EPS and $3.15 billion in revenue.
On the books, Netflix cash, cash equivalents and short-term investments totaled $1.75 billion at the end of the quarter, compared with $1.73 billion at the end of the previous fiscal year.
Shares of Netflix closed Monday at $202.68, with a consensus analyst price target of $197.21 and a 52-week range of $98.38 to $202.83. Following the release, the stock was initially up 2.3% at $207.36 in the after-hours trading session.