The market seems to like Netflix (NFLX) earnings.
At the moment, the stock is up $5 in after-hours trading, and could trend higher. All after the company beat on earnings and new subscriber numbers.
For the third quarter, the company posted EPS of $3.19, as compared to expectations for $2.56. Revenue came in at $7.48 billion, as expected, as global paid net subscriber addition jumped to 4.4 million as compared to expectations for 3.84 million.
According to a company press release:
“After a lighter-than-normal content slate in Q1 and Q2 due to COVID-related production delays in 2020, we are seeing the positive effects of a stronger slate in the second half of the year. In Q3, we grew revenue 16% year over year to $7.5 billion, while operating income rose 33% vs. the prior year quarter to $1.8 billion. We added 4.4m paid net adds (vs. 2.2m in Q3’20) to end the quarter with 214m paid memberships. We’re very excited to finish the year with what we expect to be our strongest Q4 content offering yet, which shows up as bigger content expense and lower operating margins sequentially.”
Going forward, the company forecasts paid net adds of 8.5 million. For the full-year, it expects to see operating margins of 20% or better.