The picture is starting to clear. Shares of Netflix were on the rise after close on Wednesday as the company’s Q4 results topped analyst estimates. Revenue in the quarter was $876 million versus consensus of $858 million and earnings of $0.73 per share topped the average analyst estimate of $0.55.
An increasing streaming subscriber base helped fuel the beat as the company hit 1.9 million in total international subscribers. It lost 11.2 million DVD subscribers in the quarter, but management said the rate of decline was significantly lower than that seen in December.
Looking ahead, management is expecting a loss of $0.16-0.49 per share in Q1 on similar revenue to that seen in Q4. It expects to lose 1.5 million DVD subscribers while streaming subscriptions are forecast to grow to a range of 22.8-23.6 million. Streaming revenue is expected to be $496-511 million domestically and $38-44 million internationally as the company continues its international expansion.
Netflix (NFLX : NASDAQ : US$95.04), Net Change: 2.37, % Change: 2.56%, Volume: 9,303,256
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