Netflix beats third-quarter predictions, adds over five million new subscribers

Kelley Robertson
October 19, 2017

When it comes to net revenue, the average estimate from a total of 36 analysts is 3.15 billion - compared to $2.48 billion posted in the year-ago period.

Netflix's operating income nearly doubled y-o-y in the current quarter (up 96.8 per cent) to $208.63 million from $106.04 million.

On average, analysts expect that Netflix will post $1.19 earnings per share for the current fiscal year.

The drive-in fast-food chain blamed Hurricane Harvey, partly, for a decline in same-store sales.

Following on from the second-quarter partnership with SFR/Altice in France, it also announced a new partnership with T-Mobile US which includes the bundling of Netflix into its ONE family plan. Two investment analysts have rated the stock with a sell rating, eighteen have given a hold rating and thirty-three have issued a buy rating to the company's stock. Netflix just said it would raise fees on its monthly membership plans by as much as $2 a month, and there's no doubt why the company took such a step.

Pivotal is the most bullish of the group.

"You can see that we've done very well in global without it", Hastings said. The stock traded within a range of $197.77 and $204.38.

In the letter the company also confirmed its first and only M&A transaction, buying Millarworld, the site of comic book writer Mark Millar, for an undisclosed amount.

Netflix's stock rise has left bears scratching their heads. "Analysts" was reported by TrueBlueTribune and is owned by of TrueBlueTribune. With the company's confidence at an all-time high, they announced that the budget for new content had been increased to $7 to $8 billion for next year. That compares with more than $6 billion in content spending in 2017 and $5 billion in 2016.

UBS upped the price target of Netflix (NASDAQ:NFLX) to $237.00 indicating a possible upside of 0.17%.

In a letter to investors, Netflix addressed concerns about media companies like Walt Disney ( DIS ) and 21st Century Fox ( FOXA ) pulling their content from Netflix. The competition continues to get tougher as companies like Hulu and HBO attempt to overtake Netflix, but its successful production of original series is helping immensely. "While we have multiyear deals in place preventing any sudden reduction in content licensing, the long-term trends are clear".

The company known for original TV shows such as "House of Cards" is spending heavily to produce and acquire content as it races to dominate streaming television in worldwide markets, which now account for the majority of its subscriber growth.

"I think people will start seeing the potential for this original movie initiative, that it could be done on the enormous scale we have on the television side", said chief content officer Ted Sarandos in an investors' interview Monday.

Meanwhile, bigger, more established movie studios are not coming close to 80 films per year. While the company has kept its viewership numbers under wraps, Sarandos' willingness to reveal film and anime metrics is a good sign that investments in those areas have been successful.

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