Oct 16, 2018

Netflix shares soar after crushing Q3 earnings

Sara Fischer

Photo: Chesnot / Getty Images

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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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 10 p.m. ET: 1,014,673 — Total deaths: 52,973 — Total recoveries: 210,335 — Map.
  2. U.S.: Total confirmed cases as of 10 p.m. ET: 244,678 — Total deaths: 5,911 — Total recoveries: 9,058 — Map.
  3. 2020 updates: The Democratic National Committee said its July convention will be postponed until August because of the coronavirus. A federal judge declined to delay Wisconsin's April 7 primary election.
  4. Jobs latest: Coronavirus unemployment numbers are like a natural disaster hitting every state.
  5. Public health latest: Anthony Fauci called for all states across the U.S. to issue stay-at-home orders. The FDA will allow blood donations from gay men after 3-month waiting period, citing "urgent need."
  6. Business latest: Treasury Secretary Steven Mnuchin said oil companies are eligible for aid from new lending programs the Federal Reserve is setting up, but not direct loans from his department.
  7. U.S.S. Theodore Roosevelt: Navy removes captain of aircraft carrier who sounded alarm about coronavirus.
  8. 1 future thing: In developing countries, consequences of COVID-19 could be deeper and far more difficult to recover from.
  9. What should I do? Answers about the virus from Axios experts — What to know about social distancing — Q&A: Minimizing your coronavirus risk.
  10. Other resources: CDC on how to avoid the virus, what to do if you get it.

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