Netflix Inc. (NASDAQ:NFLX) reported fourth-quarter results on Wednesday that easily topped estimates, prompting shares to soar more than 14% in trading after the bell.
Continue Reading Below
The company said subscriptions to its online movie-streaming service grew faster than expected, leading to earnings and revenue that beat expectations. Netflix also boasted that international subscriptions to its online streaming service grew to 1.9 million members in the fourth quarter.
The online video and DVD-rental company reported net income that fell 13% to $41 million, or 73 cents a share, compared with year-ago profit of $47 million, or 87 cents a share.
Revenue rose 47% to $876 million, compared with last year’s sales of $596 million.
The results handily topped the Street’s view; analysts polled by Thomson Reuters had expected earnings of 55 cents share on revenue of $857.89 million.
Looking ahead, the company forecast a first-quarter loss in the range of 16 cents to 49 cents a share on revenue between $842 million to $917 million. Analysts were looking for a first-quarter loss of 30 cents on revenue of $847.8 million.
Shares of Netflix surged 2.6% in Wednesday’s session to close at $95.04. The stock was up as much as 14% immediately after the results were announced, and were trading $11, or 11.5%, higher in after-hours trading. Netflix has rallied 37% since the beginning of the year.