Shares of Netflix (NASDAQ:NFLX) were set for a breakout day Thursday after the company late Wednesday released earnings for the third quarter. The company reported mixed results, with an earnings beat and a miss on domestic subscriber adds, while revenue slightly missed analysts’ expectations.
Earnings per share came in at $1.47 vs. the $1.04 figure analysts expected. Revenue was $5.24 billion, slightly below the $5.25 billion expected.
Domestic paid subscriber additions were 517,000 against 802,000 expected. International paid subscriber additions were 6.26 million, compared to the expected 6.05 million.
For the fourth quarter, Netflix is projecting earnings of 51 cents per share on revenue of $5.4 billion. The company is projecting 7.6 million global net adds for the fourth quarter, compared to 8.8 million in the same quarter one year earlier.
Netflix previously forecast paid net adds would increase year over year, but it’s now adjusting estimates to reflect an increased difficulty to project its future content slate, “minor elevated churn” due to pricing changes and increasing competition.
In its letter to shareholders, Netflix addressed the onslaught of new streaming services that are set to arrive later this year, including Disney’s (NYSE: DIS) Disney+ and Apple’s (NASDAQ:AAPL) Apple TV+, as well as NBCUniversal’s Peacock and WarnerMedia’s HBO Max. The company warned the launch of these new services will be "noisy" and it could generate "modest headwinds" in the near term.
Shares in NFLX hiked $14.92, or 5.3%, to $301.53
