Netflix shares soar as outlook blows past forecasts
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Netflix shares jumped more than 9 percent after the company delivered an outlook that blew past forecasts and said it plans to double its investment in original content.
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Earnings excluding items rose to 52 cents per a share in the third quarter from 13 cents a share in the year-earlier period.
Revenue increased to $1.11 billion from $905 million a year ago.
Analysts had expected the movie-streaming service to report earnings excluding items of 49 cents a share on $1.1 billion in revenue, according to a consensus estimate from Thomson Reuters.
In a letter to shareholders, Netflix said it had more than 40 million members, up from 30 million a year ago. The company also said it expects to double its investment in original content in 2014.
Netflix recently launched into the production realm with its own original programming, including 'House of Cards' and 'Orange Is the New Black.' Next year, Netflix plans a second season of 'House of Cards,' 'Orange is the New Black,' 'Derek and Hemlock Grove' and a new project from the Emmy- and Golden Globe-nominated creators of ' Damages.' They also plan several new animated series from DreamWorks, the company said in the letter.
For the fourth quarter, Netflix expects earnings between 47 cents and 73 cents a share vs. the 46 cents a share analysts currently expect.
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