Netflix beats on new subscribers by more than half a million
- Netflix reports market-beating profit for its fiscal third quarter.
- The streaming giant expects to add 8.5 million subscribers in Q4.
- Mark Mahaney discusses earnings on CNBC's "Closing Bell".
Shares of Netflix Inc (NASDAQ: NFLX) are up 1.0% in after-hours trading after the streaming giant reported market-beating earnings for its fiscal third quarter.
Netflix said its profit printed at $1.45 billion in the third quarter that translates to $3.19 per share. In the same quarter last year, its profit was capped at a much lower $790 million or $1.74 per share, as per the earnings press release.
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According to FactSet, experts had forecast the media company to post $2.56 of per-share earnings in Q3. Netflix generated $7.48 billion in revenue versus the year-ago figure of $6.44 billion, and in line with the FactSet consensus.
Netflix added 4.4 million new subscribers in the third quarter that handily topped 3.84 million expected. “Squid game” – its “biggest TV show ever”, made a hefty contribution to its quarterly subscribers’ growth.
The Asia-Pacific region contributed the most to net adds, and U.S/Canada climbed out of last quarter’s losses to add roughly 70,000 new subscribers in Q3. The California-based company expects to add 8.5 million subscribers in the fourth quarter.
Mark Mahaney’s remarks on CNBC’s ‘Closing Bell’
On CNBC’s “Closing Report”, Evercore ISI’s Mark Mahaney lauded Netflix’s strong numbers despite “super-high” expectations. He said:
These numbers are good enough for the stock to go up modestly. This will be the 4th year in a row for Netflix to add between 8 to 9 million subscribers in the December quarter. That’s pretty impressive for a company that’s now north of 200 million. It shows consistent growth, and investors love that. It’s one of the reasons we’re bullish on the stock.
Atlantic Equities also sees upside in Netflix to $780.