NEW YORK (TheStreet) -- Netflix (NFLX) - Get Report shares are surging 7.7% to $116.20 in after-hours trading on Tuesday immediately following the video streaming giant's robust fourth quarter fiscal 2015 earnings results reported after the closing bell today.
Profit exceeded projections while revenue came in under.
For the latest quarter, earnings came in at 7 cents a share, beating analysts' estimates of 2 cents a share. Revenue of $1.82 billion missed forecasts of $1.83 billion.
During the same period the year prior, the company earned 10 cents a share on revenue of $1.49 billion.
In the recent quarter, Netflix added a total of 5.59 million new subscribers internationally, ahead of expectations of 4.95 million. This was largely helped by the company's big shows such as Narcos and Marvel's Jessica Jones, the company said.
In the U.S. the company added 1.56 million new subscribers, slightly below estimates of 1.62 million new subscribers.
These results come after the company earlier this month announced that it expanded into an additional 130 new countries. Now, more than 190 countries are using the streaming service.
Thanks to this rapid expansion, the company forecasts 6 million new subscribers during the first quarter of fiscal 2016.
However, fast overseas expansion and owning original content are expensive goals and will likely dampen cash flow, MarketWatch reports.
Additionally, the company is planning to launch more than 600 hours of original programming in 2016, an increase from around 450 hours in 2015.
Separately, Netflix will see a new competitor as Time Warner's (TWX) HBO is planning to begin a stand-alone Web service in Spain, according to Bloomberg.
TheStreet Ratings has a "hold' rating and score of C on Netflix stock. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and expanding profit margins. However, as a counter to these strengths, TheStreet Ratings also found weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
You can view the full analysis from the report here: NFLX