Netflix Handily Beats Q3 Subscriber Forecast With Quarterly Record Gain of 7 Million – Variety

Netflix turned in much stronger results for the third quarter of 2018 than investors anticipated, sending its stock climbing in after-hours trading.

During Q3, the streaming giant netted 1.09 million new streaming subs in the U.S. and 5.87 million internationally. That’s compared with Netflix’s forecast of 650,000 domestic net adds and 4.35 million overseas for the September quarter — a more conservative outlook than analysts’ previous estimates.

The better-than-expected Q3 results come after Netflix widely missed second-quarter expectations for subscriber growth, which CEO Reed Hastings chalked up to periodic “lumpiness” in the business.

Netflix said the total net additions for the quarter of 7.0 million streaming subs — a new Q3 record for Netflix — were the result of greater-than-expected customer acquisition globally, “with strong growth
broadly across all our markets including Asia,” the company said in its quarterly investor letter.

The company reported Q3 revenue of $4.0 billion, up 36% year over year, earnings of 89 cents per share. Wall Street’s Q3 consensus estimates for Netflix had pegged EPS at 68 cents on revenue of $4.0 billion.

Netflix shares soared more than 14% in after-hours trading Tuesday. Ahead of the earnings report, Netflix shares closed up 4% for the day, to $346.40 per share.

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