Netflix Inc. (Nasdaq: NFLX) beat expectations with an earnings report Wednesday immediately after the bell that sent its stock up over 14% in after-hours trading, and set the stage for a stock rally in 2012.
The company reported U.S. subscribers in the fourth quarter jumped by 610,000 to reach 24.4 million. The raise helped recoup the 800,000 U.S. clients Netflix lost in the third quarter following it changed monthly rates.
The recording leasing and streaming company documented surprisingly good income for the fourth 1 / 4. Net revenue had been 73 cents a share, regarding 33% higher than The Street's estimate associated with 55 cents a share. Income rose 47% from a last year to $876 million, compared to analysts' believed $857.three zillion. By 1 p.m. Netflix shares at present (Thursday) had soared 21% to just more than $115.
Today's stock enhance offers investors a a lot necessary price tag spike as NFLX stabilizes its business from a tumultuous 2011. Right after the enterprise announced a 60% price raise plus a company segment spin off, frustrated subscribers attacked Chief Executive Officer Reed Hastings and cancelled subscriptions.
The actual stock took a cost - tumbling from a mid-year high of $305 to a yearly reduced associated with $62.thirty seven by November. 30. The share price ended this year down 61%. ow the inventory is actually publishing the actual second-biggest advance around the Normal & Poor's 500 Catalog with regard to 2012. As of Wednesday's close, the actual inventory had been up 37% for the year.
Netflix's good income statement triggered a slew of Walls Street updates. Citigroup Inc. (New york stock exchange: C) experts pushed the price focus on in order to $130 through $80, Hudson Sq . analyst Daniel Ernst elevated his focus on in order to $125 from $110, and Michael Olson from Piper Jaffray Cos. (NYSE: PJC) elevated their target in order to $130 from $100.
For next quarter, the corporation expects to report a first quarter loss of $0.49 to $0.16 per share, in comparison with the consensus estimate of a loss of $0.30. But the subscriber growth numbers show it's back on track for long-term growth.
"Q4 results will likely serve to enhance the level of comfort investors have with a story that has been volatile and unpredictable in the last 6 months," Piper Jaffray's Olson wrote to investors.
Netflix Inc. (Nasdaq: NFLX) Develops Development Through Streaming Service Netflix presently has 21.7 million streaming-service customers in the United Sates, and mail order customers have slipped to 11.2 million.
The actual business said it expects to lose video clip rental customers each month as it focuses on lower margin video clip buffering. Household DVD-subscribers fell by 2.76 million final quarter and therefore are likely to slip by another one.5 million within this seasons first 1 / 4. Netflix will have to balance the looming profit loss from losing hybrid subscribers who pay far more for both DVD and online-streaming services. But it raised profit margins for its streaming company to 10.9%, and expects that number to rise 1% per quarter.
The company also hopes to gain traction in the emerging markets it's already ventured into. Netflix expects international users to range from 2.5 million to three.1 million in 2012's first quarter, up from 1.86 million at the end of 2011. The firm gained 370,000 international consumers inside the fourth quarter. Netflix said it will hold off expanding into other international marketplaces till it reaches global success.
The company reported U.S. subscribers in the fourth quarter jumped by 610,000 to reach 24.4 million. The raise helped recoup the 800,000 U.S. clients Netflix lost in the third quarter following it changed monthly rates.
The recording leasing and streaming company documented surprisingly good income for the fourth 1 / 4. Net revenue had been 73 cents a share, regarding 33% higher than The Street's estimate associated with 55 cents a share. Income rose 47% from a last year to $876 million, compared to analysts' believed $857.three zillion. By 1 p.m. Netflix shares at present (Thursday) had soared 21% to just more than $115.
Today's stock enhance offers investors a a lot necessary price tag spike as NFLX stabilizes its business from a tumultuous 2011. Right after the enterprise announced a 60% price raise plus a company segment spin off, frustrated subscribers attacked Chief Executive Officer Reed Hastings and cancelled subscriptions.
The actual stock took a cost - tumbling from a mid-year high of $305 to a yearly reduced associated with $62.thirty seven by November. 30. The share price ended this year down 61%. ow the inventory is actually publishing the actual second-biggest advance around the Normal & Poor's 500 Catalog with regard to 2012. As of Wednesday's close, the actual inventory had been up 37% for the year.
Netflix's good income statement triggered a slew of Walls Street updates. Citigroup Inc. (New york stock exchange: C) experts pushed the price focus on in order to $130 through $80, Hudson Sq . analyst Daniel Ernst elevated his focus on in order to $125 from $110, and Michael Olson from Piper Jaffray Cos. (NYSE: PJC) elevated their target in order to $130 from $100.
For next quarter, the corporation expects to report a first quarter loss of $0.49 to $0.16 per share, in comparison with the consensus estimate of a loss of $0.30. But the subscriber growth numbers show it's back on track for long-term growth.
"Q4 results will likely serve to enhance the level of comfort investors have with a story that has been volatile and unpredictable in the last 6 months," Piper Jaffray's Olson wrote to investors.
Netflix Inc. (Nasdaq: NFLX) Develops Development Through Streaming Service Netflix presently has 21.7 million streaming-service customers in the United Sates, and mail order customers have slipped to 11.2 million.
The actual business said it expects to lose video clip rental customers each month as it focuses on lower margin video clip buffering. Household DVD-subscribers fell by 2.76 million final quarter and therefore are likely to slip by another one.5 million within this seasons first 1 / 4. Netflix will have to balance the looming profit loss from losing hybrid subscribers who pay far more for both DVD and online-streaming services. But it raised profit margins for its streaming company to 10.9%, and expects that number to rise 1% per quarter.
The company also hopes to gain traction in the emerging markets it's already ventured into. Netflix expects international users to range from 2.5 million to three.1 million in 2012's first quarter, up from 1.86 million at the end of 2011. The firm gained 370,000 international consumers inside the fourth quarter. Netflix said it will hold off expanding into other international marketplaces till it reaches global success.
About the Author:
Looking for news and investing advice that you can count on? Unlike other marketing news sites all your investing needs on topics such as Nasdaq: NFLX) can be found here with no hassle
No comments:
Post a Comment