Behind Netflix’s July Stock Rise
NFLX’s impressive 2Q17 results
Netflix (NFLX) stock rose ~21% in July 2017 to close the month at $181.66. Netflix announced its 2Q17 earnings on July 17, 2017, and shares rose 13% that same day, after the firm beat the analysts’ revenue estimate.
Netflix reported revenue of $2.8 billion in 2Q17, which was a rise of 32% YoY (year-over-year), with operating income of $128 million and an operating margin of 4.6%. In fiscal 2017, the online streaming giant aims to achieve an operating margin of 7%.
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Netflix’s non-GAAP (generally accepted accounting principles) EPS (earnings per share) was $0.15, with net income of $66 million. Analysts expected Netflix to post revenue of $2.6 billion, with EPS of $0.15 in 2Q17.
Increase in mobile users
According to App Annie, Netflix generated the highest revenue among mobile applications on Google’s Play Store (GOOG) (GOOGL) and Apple’s iOS (AAPL) in 2Q17. In 2Q17, Netflix’s mobile users rose 20% YoY to 70 million.
TechCrunch stated that Netflix generated $153 million in app revenues in 2Q17, representing a rise of 233% YoY. But mobile application revenues only account for 5.5% of total revenues for Netflix.
Over 100 million streaming members
Netflix had 103.9 million streaming members at the end of 2Q17. The firm added 5.2 million members in 2Q17, and its streaming revenues rose 36% YoY to $2.7 billion in the quarter ended June 30, 2017.
Analysts expect Netflix’s revenue to rise 29.8% YoY to $2.97 billion in 3Q17 and 25.7% YoY to 3.12 billion in 4Q17. It is estimated to grow its revenues by 30.3% to $11.5 billion in fiscal 2017.
Now let’s check in with Charter Communications.