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Netflix (NFLX) Soars to All-Time Highs on Q4 Earnings
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Streaming content giant Netflix (NFLX - Free Report) has put out an earnings beat after the closing bell Wednesday, topping estimates on both earnings and sales. A bottom-line of 15 cents per share beat the Zacks consensus by 2 cents while revenues slightly passed expectations to $2.48 billion.
Yet in every important metric, Netflix simply knocked the cover off the ball: total membership has now reached 93.8 million (the company had guided to 91.94 million), domestic net additions in Q4 hit 1.93 million (1.45 million guided) and total net income went to $154 million (guidance had $125 million). Domestic strength in particular may come as a surprise to most analysts, who saw this group as the most saturated of Netflix's market, as well as price increases expected to have staunched growth.
Further, Netflix's Q1 guidance is now for the company to earn 37 cents per share, more than double the 18 cents in the current Zacks consensus estimate. Much of the company's strength is stemming from global streaming revenue growth, which was up 35% year over year in Q4.
Netflix almost never misses earnings estimates: its only miss in the last 5 years was in Q3 of 2015. Netflix stock took a hit and stayed range-bound for most of last year, only briefly glimpsing a new all-time high earlier this week before zooming off into the stratosphere after the bell today. Now trading at $144.40, shares have bid up nearly 8.4% after-hours, following a late swing to positive territory as the closing bell approached.
Valuation may be a problem at these levels, however. The stock had already been trading at 145x 2017 earnings, and now that's being left in the dust. International buildouts -- especially in places like Brazil, now Netflix's largest market outside the English-speaking world -- are clearly having their desired effect. And if the company's guidance is indication, expect to see Netflix off to the races for the foreseeable future.
Before the earnings report, Netflix had a Zacks Rank #3 (Hold), but was straight up flunking the Zacks Style Score, with Value, Growth and Momentum reads of F across the board. Expect analyst revisions in the coming days to augment these figures, perhaps somewhat drastically.
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Netflix (NFLX) Soars to All-Time Highs on Q4 Earnings
Streaming content giant Netflix (NFLX - Free Report) has put out an earnings beat after the closing bell Wednesday, topping estimates on both earnings and sales. A bottom-line of 15 cents per share beat the Zacks consensus by 2 cents while revenues slightly passed expectations to $2.48 billion.
Yet in every important metric, Netflix simply knocked the cover off the ball: total membership has now reached 93.8 million (the company had guided to 91.94 million), domestic net additions in Q4 hit 1.93 million (1.45 million guided) and total net income went to $154 million (guidance had $125 million). Domestic strength in particular may come as a surprise to most analysts, who saw this group as the most saturated of Netflix's market, as well as price increases expected to have staunched growth.
Further, Netflix's Q1 guidance is now for the company to earn 37 cents per share, more than double the 18 cents in the current Zacks consensus estimate. Much of the company's strength is stemming from global streaming revenue growth, which was up 35% year over year in Q4.
Netflix almost never misses earnings estimates: its only miss in the last 5 years was in Q3 of 2015. Netflix stock took a hit and stayed range-bound for most of last year, only briefly glimpsing a new all-time high earlier this week before zooming off into the stratosphere after the bell today. Now trading at $144.40, shares have bid up nearly 8.4% after-hours, following a late swing to positive territory as the closing bell approached.
Valuation may be a problem at these levels, however. The stock had already been trading at 145x 2017 earnings, and now that's being left in the dust. International buildouts -- especially in places like Brazil, now Netflix's largest market outside the English-speaking world -- are clearly having their desired effect. And if the company's guidance is indication, expect to see Netflix off to the races for the foreseeable future.
Before the earnings report, Netflix had a Zacks Rank #3 (Hold), but was straight up flunking the Zacks Style Score, with Value, Growth and Momentum reads of F across the board. Expect analyst revisions in the coming days to augment these figures, perhaps somewhat drastically.