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Netflix Skyrockets 20% on Huge Earnings Beat, Membership Growth

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Netflix Inc. (NFLX - Free Report) just released its third quarter fiscal 2016 earnings results, posting earnings of 12 cents per share and revenue of $2.29 billion. Currently, NFLX is a Zacks Rank #3 (Hold), and was up 20% to $119.65 in after-hours trading shortly after its earnings report was released.

Beat earnings estimates. The company posted earnings of 12 per share, soaring past the Zacks Consensus Estimate of 6 cents per share.

Beat revenue estimates. The company saw revenue figures of $2.29 billion, beating our consensus estimate of $2.28 billion and gaining 36% year-over-year, helped by Netflix’s strong content slate including Stanger Things and season two of Narcos.

Global streaming revenue totaled $2.2 billion, of which 40% was generated abroad. Operating income amounted to $106 million, while net income was $52 million.

In the third quarter, Netflix added 0.4 million new members in the U.S and 3.2 million members internationally. The company notes it under-forecasted member growth for the quarter, while back in Q2, it was the opposite.

Netflix expects to add 5.2 million new global members in Q4, with 1.45 million net adds in the US and 3.75 million new members internationally.

Here’s a graph that looks at Netflix’s price, consensus, and EPS surprise.

NETFLIX INC Price, Consensus and EPS Surprise

NETFLIX INC Price, Consensus and EPS Surprise | NETFLIX INC Quote

Netflix is the world's leading Internet television network with millions of subscribers in nearly 50 countries who have access to an ever-expanding library of TV shows and movies, including original programming, documentaries and feature films. The company offers the ability to watch as subscribers want, anytime, anywhere, on nearly any Internet-connected screen.

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