Netflix, Inc. (NASDAQ: NFLX) is off to an incredibly strong day in the market today, and for good reason. The company reported its earnings after the closing bell yesterday, beating expectations in various categories and exciting investors. Of course, this excitement led to gains, prompting our partners at Trade Ideas to alert us to the movement. At the moment (8:14), NFLX is trading at $176.20 per share after a gain of $14.50 per share (8.97%) thus far today.
NFLX Reports Second Quarter Earnings
As mentioned above, Netflix is off to an incredible start in the market this morning, and for good reason. The company reported results from the second quarter, and while earnings per share slightly missed the mark, revenue and subscriber growth definitely picked up the slack. Here’s what we saw from the earnings report:
- Earnings Per Share – In terms of earnings per share, NFLX slightly missed the mark. During the quarter, analysts were expecting that the company would report earnings in the amount of $0.16 per share. However, the company actually reported earnings in the amount of $0.15 per share, falling a penny behind expectations.
- Revenue – While earnings slightly missed the mark, that wasn’t the case when it comes to revenue. During the quarter, analysts expected that NFLX would generate revenue in the amount of $2.76 billion. However, the company reported total revenue in the amount of $2.78 billion.
- The Big Story – Sure, financial data came in slightly below or slightly above expectations. So, what’s the big story? Well, the big story here is subscriber growth. During the second quarter, Netflix said it added a total of 5.2 million streaming subscribers. That figure absolutely blew Wall Street expectations away. In fact, Wall Street was expecting subscriber growth to come in at 3.2 million for the quarter. In the third quarter, NFLX expects to bring in 4.4 million new subscribers. This is also well ahead of analyst estimates of 3.99 million.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NFLX. In particular, we’re interested in following the growth in subscribers that the company has been able to amass. Nonetheless, we’ll continue to follow the story and bring the news to you as it breaks!
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