• Category: Latest News
  • Written by Rick Ellis

Unexpectedly Strong Netflix Q2 Earnings & Sub Numbers Send Stock Soaring

It was a very good third quarter for Netflix.

In a conference call with investors and reporters after the stock market closed on Monday, the company reported that Q3 subscriber numbers were above expectations. The success of "Stranger Things" and "Narcos were responsible for part of the bump, along with the continuing popularity of the company's many other original programs.

The company also offered 4Q subscriber estimates well above Wall Street estimates.

The company said in July it expected to add 300,000 subscribers in the U.S. and 2 million subscribers internationally in the third quarter. Industry analysts had been predicting 309,000 U.S. streaming subscribers and 2.01 million international streaming subscribers.

Instead, the company said it gained 370,000 net memberships in the U.S. and 3.2 million internationally, a total of 3.57 million, easily beating the 2.3 million the company forecast.

"We are now in the fourth year of our original content strategy and are pleased with our progress," the company said in a letter to shareholders. "In 2017, we intend to release over 1,000 hours of premium original programming, up from over 600 hours this year. The Internet allows us to reach audiences all over the world and, with a growing base of over 86 million members, there's a large appetite for entertainment and a diversity of tastes to satisfy."

For the fourth quarter of 2016, Netflix said it expects to add 5.2 million net memberships, 1.45 million in the U.S. and 3.75 million internationally. That's above the 1.27 million U.S. streaming additions and 3.32 million international streaming additions predicted by analysts.

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