Netflix, Inc. (NASDAQ:NFLX) in third quarter financial report declared the increase number of subscribers in contrast as predicted ahead of earnings. The increase numbers of subscribers are attained by the firm in US and overseas with the help of online original series like “Orange is the New Black”. The better number of subscribers has also impress investors that resulted in increasing the stocks of the company on Monday.
The firm has reported increase in profit by four times in Q3 as the firm increases a higher-than-estimated 1.3 million users to its subscription online video streaming service in US. To increase its subscribers from online series, the online services provider has invested huge amounts in original online series to increase its viewership like it’s another political satire “House of Cards,” the company has also added it had 31.1 million streaming users in US during the months of July and September.
During the last three months of 2013 the firm estimated to add approximately 32.7 million to 33.5 million users, similar number of streaming customers in US it added during same period in 2012.
According to Tony Wible, analyst at Janney Montgomery Scott said the constant increasing numbers of subscriber will maintain the outlook energetic that this firm has a high number of subscriber base and has pricing influence in its angle to take out more worth, he also rated the firm as Buy.
The internet subscription service streaming TV shows and movies provider declared that it will increase the investments by two folds in original programming in next year, when the firm will broadcast second seasons of both of its series. Investing on original shows will still lower 10% of its international content expenses.
Netflix, Inc. (NASDAQ:NFLX) declared net income of 52 cents in each share, or $32 million, in contrast to net income of 13 cents on each share, or $8 million, for Q3 2012, while its latest quarter revenue increase 22% to $1.1 billion.
But analyst at FactSet predicted that the company earnings as 48 cents on each share on revenue of $1.1 billion, while analyst at Thomson Reuters has estimated EPS as 52 cents. Netflix, Inc share increased 6.44% to 354.99 in last trading session.