Internet television network Netflix (NFLX) late Tuesday said it added more subscribers than expected in the third quarter. Netflix stock rose in extended trading.
The Los Gatos, Calif.-based company added 4.38 million new streaming subscribers in the September quarter. Analysts expected Netflix to add 3.78 million subscribers, vs. the company’s own forecast for 3.5 million.
Netflix ended the third quarter with 213.56 million streaming subscribers worldwide.
For the current quarter, Netflix is targeting 8.5 million new subscribers. Wall Street had expected 8.41 million additional subscribers in the December quarter, according to FactSet.
Netflix Stock Rises Late
In after-hours trading on the stock market today, Netflix stock advanced 0.2%, near 640.10. During the regular session Tuesday, Netflix stock rose 0.2% to close at 639.
Netflix earned $3.19 a share on sales of $7.48 billion in the third quarter. Analysts were looking for Netflix earnings of $2.56 a share on sales of $7.48 billion, FactSet said. On a year-over-year basis, earnings jumped 83% while sales climbed 16%.
For the current quarter, Netflix expects to earn 80 cents a share on sales of $7.71 billion. Wall Street had predicted Netflix earnings of $1.13 a share on sales of $7.66 billion in the fourth quarter, FactSet said.
“After a lighter-than-normal content slate in Q1 and Q2 due to Covid-related production delays in 2020, we are seeing the positive effects of a stronger slate in the second half of the year,” Netflix management said in a letter to shareholders.
Netflix got a boost late in the quarter from the release of global hit series “Squid Game” from South Korea.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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