FinancialBuzz.com’s latest Buzz on the Street: Netflix Inc. (NASDAQ: NFLX) Third Quarter Financial Results
Netflix Inc. (NASDAQ: NFLX) is the world’s leading internet entertainment service with 130 million paid memberships in over 190 countries enjoying TV series, documentaries and feature films across a wide variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.
Netflix reported third quarter 2018 financial results on Tuesday. Netflix reported diluted earnings per share of USD 89 cents on revenue of USD 3.9 Billion, which increased by 34% year over year. The stronger than expected results were driven by growth in streaming revenue increased by 36%, as average paid membership increased by 25% and average selling price increased by 8%. Netflix’s international segment led the growth by reporting 5.87 million new users, bringing total users to 78.64 million. The U.S. reported an add-on of 1.09 million, now a total of 58.46 million users.
Analysts at Bank of America have a buy rating on Netflix saying, “Stellar third quarter, net subscriber adds well above the Street. … Netflix came in above on both U.S. and international net subscriber adds, with 1.09 million U.S. and 5.87 million intl vs. consensus estimates of 657,000 and 4.39 million. International net add growth was noted to be broad based, with Asia highlighted as a key area of strength. Additionally, the fourth-quarter net add guide of 9.4 million implies total subscribers of 146.5 million by year-end 2018, which is above our pre-2Q’18 forecast of 142.6 million subscribers. In effect, 3Q net adds and the 4Q guide erase the 2Q’18 miss, and returns Netflix’s growth trajectory to where it had been earlier this year. Profitability remains healthy.”
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