Netflix beat revenue and EPS estimates
Netflix (NFLX) announced its 3Q17 earnings on Monday, October 16, beating analyst estimates on all counts. Netflix’s revenues for 3Q17 came in at $2.99 billion, slightly higher than Wall Street estimates of $2.97 billion—a 30% increase from 3Q16.
In 3Q17, Netflix posted EPS (earnings per share) of $0.37 compared to earnings estimates of $0.32. In addition to this number, the net addition to its subscriber base was also a highlight of Netflix’s 3Q17 earnings report.
Netflix is seeing robust growth in its subscriber base
Netflix added 5.3 million subscribers in 3Q17, including 4.45 million international subscribers. The company expected 4.4 million net additions, while Wall Street estimated 4.5 million more subscribers.
Netflix now has a global subscriber base of 109.3 million, as its international subscriber growth strengthens. The company’s international subscriber base rose 39.1% year-over-year in 3Q17.
The net addition amount is probably the company’s most important figure, as it represents the possibility of increasing revenues going forward. As the chart above shows, Netflix has seen robust subscriber growth since 1Q13.
Netflix stock has been on a tear this year, returning 65% year-to-date. Netflix stock rose 1.9% in after-hours trading on October 16 and breached the $200 mark for the first time.