Netflix (NFLX) Shares Jump on Strong Q3 Results, Sharply Raised Subs Outlook

October 20, 2010 4:46 PM EDT Send to a Friend
Get Alerts NFLX Hot Sheet
Trade NFLX Now!
Join SI Premium – FREE
Netflix Inc. (NASDAQ: NFLX) shares are jumping in extended trade after the company reported that its third-quarter income grew 26 percent and it continued to add subs.

The company reported third-quarter earnings of $38 million or 70 cents per share, up from $30.1 million or 52 cents per share in the same quarter last year.

Excluding one-time charges, the company earned 78 cents per share, 7 cents better than the analyst estimate of 71 cents per share.

Revenue for Netflix jumped 31 percent to $553.2 million from $423.1 million last year, beating the market consensus of $550.9 million.

The company said that it added 16.9 million subscribers in the quarter, up 52 percent from the same time last year.

Looking forward, Netflix sharply raised its fourth-quarter subscribers guidance from 17.7-18.5 million to 19-19.7 million.

The company raised its fourth-quarter earnings guidance to a range of 59 cents to 74 cents from a prior view of 58 cents to 73 cents per share, compared to the Street's view of 74 cents per share.

Netflix also raised its fourth quarter sales guidance to a range of $586 million to $598 million from a prior view of $580 million to $596 million.

for the full year, the company narrowed its earnings guidance from $2.58-$2.86 per share to $2.68-$2.83 per share, which compares to the Street estimate of $2.79 per share. Sees full-year sales of $2.15-$2.16 billion, below the consensus of $2.17 billion.

Shares of Netflix are up 6.50 percent to $163.11 in aftermarket movement on Wednesday.

UPDATE: Click here to see some highlights from Netflix's Q3 conference call.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Earnings

Related Entities

Earnings

Add Your Comment