Netflix, Inc. Earnings Cheat Sheet: Beats Estimates, Shares Down

S&P 500 (NYSE:SPY) component Netflix, Inc. (NYSE:NFLX) reported net income above Wall Street’s expectations for the most recent quarter. Netflix provides subscription service, streaming movies, and TV episodes over the Internet.

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Netflix Earnings Cheat Sheet for the Third Quarter

Results: Net income for Netflix, Inc. rose to $62.5 million ($1.16 per share) vs. $38 million (70 cents per share) in the same quarter a year earlier. This marks a rise of 64.5% from the year earlier quarter.

Revenue: Rose 48.6% to $821.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: NFLX beat the mean analyst estimate of 96 cents per share. Analysts were expecting revenue of $811.1 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 42.1%, with the biggest boost coming in the second quarter when revenue rose 51.7% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 56.7% and in the first quarter, the figure rose 86.6%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 15 cents in the second quarter, by 4 cents in the first quarter, and by 16 cents in the fourth quarter of the last fiscal year.

Margins rose in the second quarter after falling the quarter before. Gross margin rose 20.4 percentage points to 58.1% from the quarter earlier quarter. In the first quarter, the figure rose 1.5 percentage points to 37.9% from the year earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1.22 per share to $1.10, indicating that analysts are growing pessimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $4.65 a share to $4.46 over the last sixty days.

Competitors to Watch: Inc. (NASDAQ:AMZN), Dish Networks (NASDAQ:DISH), Best Buy (NYSE:BBY), Comcast (NASDAQ:CMCSA), AOL (NYSE:AOL), Time Warner (NYSE:TWX), Time Warner Cable (NYSE:TWC), DirecTV (NASDAQ:DTV), TiVo (NASDAQ:TIVO), Echostar (NASDAQ:SATS), Coinstar, Inc. (NASDAQ:CSTR), Apple Inc. (NASDAQ:AAPL) and IMAX (NASDAQ:IMAX).

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(Source: Xignite Financials)