Shares of Netflix went on a tear Thursday after swinging to a profit in its fourth quarter and adding nearly 4 million customers. Netflix reported $8 million in net income for the fourth quarter, or $0.13 per share. Revenue rose 8% to $945 million from the same quarter a year earlier. Wall Street analysts on average had expected Netflix to report a quarterly loss of $0.13 per share.
In the same quarter last year, Netflix had earnings of $41 million, or $0.73 per share, on revenue of $876 million. The company said it added 2.1 million customers during the fourth quarter to its U.S. streaming business, its largest segment, for a total of 27.2 million at the end of 2012.
In international markets, the company signed up 1.8 million new customers. The company also forecast it will add 1.7 million members in the first three months of 2013, though it predicts net income will be "relatively flat" due to declining DVD profits and higher global operating costs.
Netflix (NFLX : NASDAQ : US$146.86), Net Change: 43.60, % Change: 42.22%, Volume: 16,903,881