Shares of Netflix (NFLX) surged 10% to $178.98 in after-hours trading on Monday after the streaming giant posted stronger-than-expected results for the second quarter of 2017 and gave an upbeat outlook for the third quarter.
Netflix posted revenue of $2.78 billion for the quarter, surpassing analysts' projected $2.76 billion in sales. Adjusted earnings were 15 cents per share, missing consensus estimates by a penny.
The company crushed Wall Street's expectations for new subscribers. Netflix said it had 1.07 million new U.S. subscribers during the period, trouncing analysts' predicted 631,000 new domestic subscribers. It also added 5.2 million new international subscribers, which was higher than analysts' estimated 2.6 million new international subscribers.
For the third quarter of fiscal 2017, Netflix expects to post adjusted earnings of 32 cents per share and roughly $3 billion in revenue. The company predicts it will add 4.4 million new international subscribers and 750 million U.S. customers. That's higher than Wall Street's expectations for adjusted earnings of 23 cents per share and $2.9 billion in sales, as well as net U.S. adds of 725,000 subscribers and 2.59 million international subscribers.
Netflix has now exceeded its EPS guidance for seven quarters in a row, according to data from Wedbush analyst Michael Pachter.
The company recently decided to shift the bulk of its original content releases to the second quarter, which likely helped to prop up this quarter's results. When Netflix made the move, it said that the second quarter used to be a traditionally slower period for new subscriber adds. This quarter, Netflix released 14 new seasons from popular shows such as House of Cards, Orange Is the New Black, Unbreakable Kimmy Schmidt and Master of None, among others.