Oct 16, 2018 - Technology

Netflix shares soar after crushing Q3 earnings

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Netflix stock was up roughly 15% in after-hours trading Tuesday after the streaming giant announced it had beat investor expectations on earnings, revenue and user growth.

Flashback: Netflix failed to meet investor expectations around user growth in July during its second quarter earnings report, causing it's stock to drop nearly 14% in after-hours trading.

By the numbers, per CNBC:

  • Revenue: $4 billion vs. $4 billion estimate, per a Refinitiv consensus estimate.
  • Earnings per share (EPS): 89 cents vs. 68 cents estimate, according to a Refinitiv consensus estimate.
  • Total subscriber additions: 6.96 million
  • Domestic subscriber additions: 1.09 million vs 673,800 estimated, per FactSet.
  • International subscriber additions: 5.87 million vs. 4.46 million estimated, according to FactSet.

Between the lines: Some analysts have been bearish on Netflix's ability to grow its user base in North America, due largely to saturation in that region.

Go deeper: The business of Netflix, explained

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