Shares of streaming giant Netflix (NFLX) are up nearly 15% after the company posted better-
than-expected third quarter earnings and said it added 2.41 million net new subscribers.
The Silicon Valley-based company reported earnings per share of $3.10 U.S. versus $2.13 U.S.
a share that was expected on Wall Street. Revenue for the July through September period
came in at $7.93 billion U.S. compared to $7.84 billion U.S. that was forecast by analysts,
according to Refinitiv data.
The 2.41 million new subscribers were more than double the number Netflix had forecast. Most
of Netflix’s subscriber growth came from the Asia, which accounted for 1.43 million new
subscriptions. The U.S. and Canada had the smallest growth, providing 100,000 net new
subscribers.
In its earnings call with analysts, Netflix executives also said they will begin cracking down on
password sharing next year in an effort to boost revenue.
Looking ahead, Netflix forecast it would add 4.5 million subscribers during the current fourth
quarter and said it expects revenue of $7.8 billion U.S.
The company attributed its strong Q3 results to hit TV shows and movies such as Stranger
Things and The Gray Man. Netflix also promoted its plan to launch a new lower-priced
advertising supported streaming tier in November during its latest earnings release.
Prior to today (October 19), Netflix’s stock had fallen 60% this year to trade at $240.86 U.S. per
share.
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