Shares of Netflix Inc. (NFLX) spiked more than 12% after-hours Tuesday, October 16 after the company reported earnings of 89 cents per share on revenue of $4 billion.
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Analysts polled by FactSet were expecting Netflix to report EPS of 68 cents per share on revenue of $4 billion. Perhaps more importantly than the earnings beat, however, Netflix announced that it added 1.09 million subscribers in the U.S., and 5.87 million subscribers globally, well ahead of analyst estimates of 674,000 adds in the U.S., and 4.46 million globally.
The results also beat Netflix's previously-issued guidance of 5 million net subscriber additions in Q3 -- 650,000 in the U.S. and 4.35 million in international markets.
The company attributed its stronger-than-expected Q3 subscriber adds to "greater-than-expected acquisition globally, with strong growth broadly across all our markets including Asia."
For the seasonally strong fourth quarter, Netflix guided for 9.4 million net streaming adds, well above a 7.7 million analyst consensus estimate.
For the current quarter, Netflix increased revenue guidance 29% to $4.23 billion and earnings to 50 cents per share.
Netflix's shares closed Tuesday's session up nearly 4%.