Netflix Inc. (NASDAQ: NFLX) reported its most recent quarterly results after the closing bell Tuesday. The firm said that it had $1.57 in earnings per share (EPS) and $5.77 billion in revenue, compared with consensus estimates that called for $1.65 in EPS and $5.76 billion in revenue. The first quarter of last year reportedly had $0.76 in EPS and $4.52 billion in revenue.
During the first quarter, global net subscription additions totaled 15.77 million. Note that Netflix now has a total of 182.86 million total memberships worldwide.
Looking ahead to the second quarter, the company is calling for $1.81 in EPS on $6.05 billion in revenue. At the same time, the company is expecting to see net subscriber adds of 7.5 million. There are consensus estimates calling for $1.54 in EPS on $5.97 billion in revenue.
Netflix finished the quarter with cash of $5.2 billion, while its $750 million unsecured credit facility remains undrawn. Combined with its improved free cash flow outlook for 2020, the company has more than 12 months of liquidity and substantial financial flexibility.
Reed Hastings, board chair and CEO of Netflix, detailed in the shareholder letter:
There are three primary effects on our financial performance from the crisis. First, our membership growth has temporarily accelerated due to home confinement. Second, our international revenue will be less than previously forecast due to the dollar rising sharply. Third, due to the production shutdown, some cash spending on content will be delayed, improving our free cash flow, and some title releases will be delayed, typically by a quarter
Shares of Netflix closed at $433.83 on Tuesday, in a 52-week range of $252.28 to $449.52. The stock has a consensus price target of $402.21. Following the announcement, the stock was initially up 4% at $450.45 in the after-hours trading session.