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Netflix Inc. (NFLX - Free Report) just released its second quarter fiscal 2017 earnings results, posting earnings of 15 cents per share and revenue of $2.79 billion. Currently, NFLX is a Zacks Rank #2 (Buy), and is up nearly 9% to $176.13 per share in after-hours trading shortly after its earnings report was released.

Netflix:

Missed earnings estimates. The company posted earnings of 15 cents per share, lagging behind the Zacks Consensus Estimate of 16 cents per share. Net income was $66 million for the quarter.

Beats revenue estimates. The company saw revenue figures (including DVD) of $2.79 billion, just edging past our consensus estimate of $2.76 billion and growing 32.2% year-over-year. Total streaming revenues were $2.67 billion, increasing 35.8% year-over-year.

Operating income came in at $128 million, while operating margin was 4.6% for the quarter.

Netflix said that streaming membership grew more than expected, from 99 million to 104 million, and the company cited its “amazing content” as the reason. The company also said it crossed the symbolic milestone of 100 million members during Q2.

The streaming platform added 5.2 million users during the period, well above Wall Street’s estimates of 3.23 million.

Looking ahead, Netflix expects earnings of 32 cents per share (net income of $143 million) and total revenues of $2.969 billion for the third quarter of fiscal 2017.

“Our Q3 guidance assumes much of this momentum will continue but we are cognizant of the lessons of prior quarters when we over-forecasted and there was lumpiness in net adds, likely due to demand being pulled forward,” said Netflix.

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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