What Drove Netflix (NFLX) After Hours Rally - RBC
RBC Capital analyst, Mark Mahaney, reiterated his Outperform rating on shares of Netflix (NASDAQ: NFLX) and raised the price target to $150 from $130 after posting very strong Q3 EPS results with particular strength in sub growth. Original Content appears to be bolstering the brand globally.
Revenue of $2.29B was slightly above Street estimates, while GAAP EPS of $0.12 handily beat Streetexpectations of $0.04. What drove the 20% after-market rally though was the subscriber beat and raise: Domestic Q3 Adds of 370K (vs. Street’s 309K), Intl Q3 Adds of 3.2MM (vs. Street’s 2.0MM), Q4 Domestic Adds guidance of 1.45MM (vs. Street’s 1.27MM) and Q4 Intl Adds Guidance of 3.75MM (vs. Street’s 3.3MM).
This is essentially low expectations combined with a nice beat.
For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.
Shares of Netflix closed at $99.80 yesterday.