Netflix Inc. added more than twice as many subscribers in the third quarter than it did in a disappointing previous quarter, the company said in an earnings report Wednesday afternoon, sending shares higher. Netflix reported 6.77 million new paying subscribers to its streaming service in the quarter, with only 500,000 coming from the U.S., where membership actually declined in the previous quarter. Analysts on average expected Netflix to add 6.7 million new subscribers, according to FactSet, after the company projected 7 million paid net adds. Netflix reported earnings of $1.47 a share on sales of $5.25 billion, up from profit of 89 cents a share on revenue of $3.91 billion a year ago. On average, analysts expected Netflix to report earnings of $1.03 a share on sales of $5.25 billion, according to FactSet. Netflix shares rose more than 2% in immediate after-hours trading following the release of the results Wednesday afternoon. Netflix stock was slammed after its last quarterly earnings report in response to disappointing subscriber growth, and has declined 21.8% in the past three months as the S&P 500 index has dropped 0.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
- Project Syndicate: Ban on Huawei in U.K. shows China is playing a weak hand with the West - July 16, 2020
- KFC partners with Beyond Meat to launch limited-time plant-based Beyond Fried Chicken - July 16, 2020
- Coronavirus update: Global COVID-19 cases climb to 13.6 million after record one-day tally of 230,400 new infections - July 16, 2020