Netflix spikes as earnings and subscribers blow past estimates

Ernesto S. Ruscio/Getty Images for NetflixNetflix CEO Reed Hastings
  • Netflix posted Tuesday third-quarter earnings and subscriber growth that topped expectations.
  • The streaming giant also announced fourth-quarter subscriber growth that blew past expectations.
  • Shares rallied 14% on the news.
  • Watch Netflix trade in real time here.

Netflix shares rallied 14% following Tuesday’s closing bell after the streaming giant announced third-quarter earnings and subscriber growth blew past Wall Street expectations.

Here are the important numbers:

  • Subscriber additions: 7 million total. Analysts were expecting 4.8 million – 600,000 in the US and 4.2 million internationally, according to Nomura Instinet. In the third quarter last year, Netflix added 5.3 million subs.
  • Earnings per share: $US0.89. Analysts were looking for $US0.68 a share. In the third quarter of 2017, Netflix earned $US0.29 a share.
  • Revenue: $US4 billion. Analysts were expecting $US4 billion, according to Bloomberg. In the third quarter last year, Netflix posted $US2.99 billion in sales.
  • Total streaming net change for fourth quarter:9.4 million. Analysts were expecting 7.7 million – 1.6 million in the US and 6.1 million internationally, according to Instinet.

Netflix has gained 96% this year, including Tuesday’s post earnings move.

Now read:

NFLXMarkets Insider

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.