Netflix (NFLX) Stock: Soaring On Strong Results

In the earnings report, NFLX came in line with expectations on just about all fronts. During the quarter, the company said that it generated earnings per share in the amount of $0.41. This figure was right in line with analyst expectations. On the revenue front, the company came in just ahead of expectations, producing $3.29 billion in comparison to the $3.28 billion that was expected.

On a year-over-year basis, these results were exceptional, to say the least. From the fourth quarter of 2016, these figures show that NFLX has seen revenue growth in the amount of 32.6% and earnings-per-share growth in the amount of 173%. However, that wasn’t the best part.

The best part of the report had to do with subscriber growth and guidance. During the fourth quarter, Netflix added a staggering 8.33 million new streaming subscribers. That’s well ahead of the 6.27 million analysts were expecting, and it brings the total subscriber base to 117.58 million. Finally, on the guidance side, NFLX said that it is expecting to bring in $3.686 billion in revenue, generating $0.63 in earnings per share. That’s well ahead of analyst expectations of earnings at $0.54 per share on $3.487 billion in revenue.

What We’re Seeing From The Stock

One of the first things that we learn when we start to trade or invest in the market is that the news causes the moves. In general, earnings news is overwhelmingly important, leading to strong gains in the event of an earnings beat and big losses in the case of missed expectations. Nonetheless, the report released by Netflix proved to be well ahead of expectations, leading to strong gains in the value of the stock. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:11), NFLX is trading at $252.52 per share after a gain of $24.94 per share (10.96%) thus far today.

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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 ongoing growth of the company and seeing if the fourth quarter results reach the high bar the company has set for itself. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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