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Netflix beats estimates with EPS of 79 cents
Netflix shares are exploding in after-hours trading after the company revealed it had a truly awesome fourth quarter. Shares are up 17% to $390 as of 2:45 pm PST. THAT’S JUST A COUPLE OF DOLLARS AWAY FROM WHERE APPLE WAS JUST A FEW MONTHS AGO, YOU GUYS.
But back to Netflix’s rockin’ fourth quarter: the company raked in an EPS of 79 cents on $1.175 billion in revenue. That’s up from 13 cents a share on $945 million in revenue this time last year. Meanwhile, Wall Street was anticipating 66 cents a share on $1.17 billion in revenue.
Netflix now has 44 million members and expects 48 million by the end of Q1 2014. But the company is lowballing its Q1 forecast and projecting an EPS of 78 cents.
Netflix’s super awesome quarter comes as Web-only shows like House of Cards and Orange is the New Black are gaining more traction as legitimate forms of entertainment. All told, Netflix has earned more than 80 major award nominations, including Emmy and Golden Globes nominations for House of Cards, Orange is the New Black, Arrested Development, and even Hemlock Grove. Even Hemlock Grove, you guys.
House of Cards earned its very first Golden Globe award last week when Robin Wright won for Best Actress in a TV Drama. Additionally, House of Cards and Orange is the New Black were both included in the American Film Institute’s list of the ten best TV series of the year. AND Netflix’s original documentary The Square has been nominated for an Academy Award.
And it gets better—Mitt, the much-anticipated documentary about failed presidential hopeful Mitt Romney, airs on Netflix this Friday. (I just realized this today and I am SO ready to hate-watch it and post a bunch of feminist, liberal rants on Facebook about it.)
Netflix also revealed that the second season of House of Cards and its other future original series will all be streamed in 4K Ultra High Definition—which the company admits will not affect many Netflix members and is mainly to undergird “consumer perception of Netflix as a leader in Internet TV.” But 4K-compatible TVs are expected to drop in price quickly and become more ubiquitous in the near future, so Netflix is clearly staying ahead of the curve here.
“It’s been a good year for Netflix. People around the world want what we offer: consumer-in-control Internet television,” wrote Reed Hastings and CFO David Wells in a letter to shareholders.
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