Netflix (NFLX) Q4 Earnings Beat, Paid Subscriber Count Up
Zacks Investment Research | Jan 18, 2019 07:01AM ET
Netflix (NASDAQ:NFLX) reported fourth-quarter 2018 earnings of 30 cents per share that beat the Zacks Consensus Estimate by 6 cents. The figure was much lower than 41 cents reported in the year-ago quarter but better than management’s guidance of 23 cents.
Revenues of $4.19 billion lagged the consensus mark of $4.21 billion but surpassed management’s guidance. The top line increased 27.4% year over year, driven by a solid 36% jump in streaming revenues from a year ago.
Shares were down almost 4% in after-hour trading, apparently due to weak guidance for U.S. streaming paid net additions for the first quarter of 2019. Netflix recently raised prices for new members in the United States. The latest pricing will be phased out for existing members over the first and second quarter, which management believes will eventually lift average selling price (ASP).
Notably, Netflix has returned 60.2% in the past year, significantly outperforming the Zacks Investment Research
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