Netflix spikes after earnings and subscribers blow past estimates

Netflix CEO Reed HastingsErnesto S. Ruscio/Getty Images for Netflix

• Netflix posted Tuesday third-quarter earnings and subscriber growth that topped expectations.
• The streaming giant also announced fourth-quarter subscriber growth that blew past expectations.
• Shares rallied 14% on the news.
• Watch Netflix trade in real time here.

Netflix shares rallied 14% following Tuesday’s closing bell after the streaming giant announced third-quarter earnings and subscriber growth blew past Wall Street expectations.

Here are the important numbers: 

• Subscriber additions: 7 million total. Analysts were expecting 4.8 million — 600,000 in the US and 4.2 million internationally, according to Nomura Instinet. In the third quarter last year, Netflix added 5.3 million subs.
• Earnings per share: $0.89. Analysts were looking for $0.68 a share. In the third quarter of 2017, Netflix earned $0.29 a share.
• Revenue: $4 billion. Analysts were expecting $4 billion, according to Bloomberg. In the third quarter last year, Netflix posted $2.99 billion in sales.
• Total streaming net change for fourth quarter: 9.4 million. Analysts were expecting 7.7 million — 1.6 million in the US and 6.1 million internationally, according to Instinet. 

Netflix has gained 96% this year, including Tuesday’s post earnings move.

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