Netflix Earnings: Shares Skyrocket on Profit Win
Netflix, Inc. (NASDAQ:NFLX) delivered a profit and beat Wall Street’s expectations. Netflix surprised Wall Street with a turnaround revenue growth number and added 2.05 million subscribers, finishing 2012 with 27.15 million total subscribers of its service. Shares surged upward 32.98%.
Netflix, Inc. Earnings Cheat Sheet
Results: Net income decreased -77.29% to $8 million (13 cents per diluted share) in the quarter versus a net gain of $35.22 million in the year-earlier quarter.
Revenue: Rose 10% to $945 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Netflix, Inc. reported adjusted net income of 13 cents per share. By that measure, the company beat the mean analyst estimate of $0. It beat the average revenue estimate of $934.12 million.
Media analyst Michael Pachter Wedbush Securities stated, “The subscriber number is impressive, and kind of reinforces that the killer app on tablets is Netflix…Holiday tablet sales drove the upside [in subscribers] in the season.”