Netflix Beats Estimates; Shares Skyrocket

Netflix shares soared in after-hours trading after the online DVD rental service reported better-than-expected Q3 earnings and gave a bullish forecast for earnings for the year
Net income was $12.8 million up 84 percent, from $6.9 million, the Los Gatos, C-based company said in a press release. Revenue soared 48 percent to $256 million. Excluding some costs, profit was $14.6 million, or 21 cents. Analysts had expected profit of 12 cents on sales of $251.9 million. according to Thomson Financial. Shares rose $3.02. or 13 percent, to $26.10. The company estimated that it will have at least 6.3 million subscribers by the end of the year, up from the 5.66 million in Q3.
The company’s subscriber level gained 58 percent over the previous year. Net subscriber additions were 493,000 compared with 396,000 during the year-ago period. Subscriber acquisition costs, a key metric, was $45.32, up 25 percent from $36.33.
Earnings | Conference Call