There were worries about the financial health of Netflix (NASDAQ:NFLX). However, the business has effectively shaken off these worries, for now at least, as they have reported very impressive numbers.
According to a company release, Netflix in the last three months, have managed to add 3.2 million international customers. This is 50 percent more than the 2 million the analysts had predicted. In the three months period ending September, the business had 83.3 million subscribers. The numbers of this video streaming business in the United States has gone up by 21 percent to reach 370,000, thanks to hit shows like Narcos and Stranger Things. Netflix can certainly do with other shows like these ones.
The Stock Jumps Backed By Results
The quarterly revenues of the company have also gone up by an impressive 31 percent. It now stands at £1.88 billion or $2.29 billion. This is the first time their sales have crossed the $2 billion mark. Their per share earnings for the third-quarter stands at 12 cents, which is almost double of the 7 cents they made a year earlier in the same period.
In after-hours trading on Wall Street, the Netflix stock went up by a massive 20% as a result to reach $119. Earlier this year, the stock had come down by 13 percent.
Analysts Get It Wrong
Interestingly, analysts had predicted that the earnings for the third-quarter will be actually lower around 6 cents for each share. Analysts failed to accurately predict the subscriber growth figures as well. They had said that it would be around 2.3 million. Netflix (NASDAQ:NFLX) was able to beat this by almost a million.
Barton Crockett, from the FBR Capital Markets, had earlier stated, “They’re adding fewer subscribers this year than they did last year. … You know, that’s why I think you’ve got to be careful with this stock”.
In a letter to the shareholders, the company said, “We are now in the fourth year of our original content and are pleased with our progress. In 2017, we intend to release over 1,000 hours of premium original programming, up from over 600 hours this year”.
It could get even better for the business as Netflix is now focusing on expanding overseas to counter the low US growth. The business has a strong presence in 130 markets across the world, except China. However, Netflix has said that they will be licensing content in China soon to boost their presence in the country.