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Financial Mirror (Cyprus) - - FRONT PAGE -

Net­flix Inc. (NAS­DAQ: NFLX) re­leased its most re­cent earn­ings re­port af­ter the mar­kets closed on Mon­day. Over­all, there was an in­cred­i­ble re­ac­tion to the re­port with the stock surg­ing as much as 20%. So far this year, the stock has ac­tu­ally traded down over 10% for most of 2016. This earn­ings re­port could sig­nal the re­turn of this stream­ing gi­ant.

The com­pany posted $0.12 in earn­ings per share (EPS) and $2.29 bln in rev­enue. Thom­son Reuters had con­sen­sus es­ti­mates that called for $0.06 in EPS on $2.28 bln in rev­enue. The same pe­riod from last year posted $0.07 in EPS and $2.28 bln in rev­enue.

Do­mes­ti­cally, rev­enue rose 23% year over year while the in­ter­na­tional seg­ment rev­enue grew by 65%.

Dur­ing this quar­ter, Net­flix added 0.4 mil­lion mem­bers in the US ver­sus its forecast of 0.3 mil­lion and 3.2 mil­lion mem­bers in­ter­na­tion­ally ver­sus 2.0 mil­lion. The over-per­for­mance was driven pri­mar­ily by stronger than ex­pected ac­qui­si­tion due to ex­cite­ment around Net­flix orig­i­nal con­tent. To­tal net adds for the quar­ter was 3.57 mil­lion mak­ing a grand to­tal of global paid mem­ber­ships of 86.74 mil­lion.

In terms of guid­ance for the fourth quar­ter, Net­flix ex­pects to have $0.13 in EPS and $2.34 bln in rev­enue. The con­sen­sus es­ti­mates called for $0.07 in EPS on $2.4 bln in rev­enue.

For the fourth quar­ter, Net­flix fore­casts 5.2 mil­lion global net adds, with 1.45 mil­lion net adds in the US and 3.75 mil­lion new mem­bers in­ter­na­tion­ally. Over­all, man­age­ment is pleased with the re­sults thus far as it ex­pects the av­er­age sell­ing price (ASP) to grow 12% from the first quar­ter of 2016 to the fourth quar­ter of this year. In­ter­na­tion­ally, the ini­tial de­mand from its launch in Spain, Por­tu­gal and Italy in the fourth quar­ter will also af­fect the year-overyear net adds com­par­i­son.

On the books, cash, cash equiv­a­lents and short-term in­vest­ments to­talled $1.34 bln, ver­sus $2.31 bln at the end of the pre­vi­ous year.

Shares of Net­flix closed Mon­day down 1.7% at $99.80, with a con­sen­sus an­a­lyst price tar­get of $103.98 and a 52-week trad­ing range of $79.95 to $133.27. Fol­low­ing the re­lease of the earn­ings re­port, the stock was up 20% at $119.82 in the af­ter-hours trad­ing ses­sion. (Source: 24/7 Wall St.com)

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