Netflix modestly exceeded expectations in its latest Q4 earnings report with higher earnings per share and revenue, sending stocks up in after-hours trading.
Investors were eager to see how the company fared following the launch of Disney+ and AppleTV+ in November and in light of the upcoming launch of NBCUniversal’s Peacock streaming service.
Earnings per share were $1.30 compared to an estimate of $0.51, and overall revenue was $5.47 billion compared to an estimate of $5.45 billion.
Year over year growth remained steady at 30.6 percent, slightly down from the last quarter’s rate of 31.1 percent, but above prior quarters in 2019.
The number of net paid subscribers, perhaps the most anticipated metric from the streaming company, was also up at 8.76 million. While this was not quite the 9.7 million anticipated by bullish Goldman Sachs analysts, it did beat the 7.6 million forecast by Netflix and other analysts.
The total number of memberships was 167 million, up from 158 million in the last quarter, with a year over year growth of 20 percent.
The number of U.S. subscribers, however, came in at 550,000, compared to an estimate of 589,000.
In a letter to shareholders, Netflix highlighted its slate of original programming, including The Witcher, which debuted in December and is tracking to become its “biggest season one TV series ever” with 76 million member households choosing to tune into the action-fantasy adventure.
As U.S. competition grows, Netflix appears primed to produce more content tailored to different markets around the world.
“We know that local audiences love local stories. In fact, local originals were the most popular 2019 titles in many countries, including India, Korea, Japan, Turkey, Thailand, Sweden, and the UK,” the company said in its shareholder letter.
Peacock shared the trailer for the second season of the celebrity competition show, 'The Traitors.'
Darden, the parent company of chain restaurants like Olive Garden and Ruth's Chris Steakhouse, beat Wall Street estimates in its latest earnings report.
A former Facebook executive pled guilty to stealing more than $4 million from the company while she was employed there.
Rising safety concerns over water bead products marketed to kids have prompted major retailers like Amazon, Target and Walmart to pull some toys off their shelves.
The Congressional Budget Office said Friday it expects inflation to nearly hit the Federal Reserve's 2% target rate in 2024, as overall growth is expected to slow and unemployment is expected to rise into 2025, according to updated economic projections for the next two years.
Intel is out with a new product to challenge other big players in the space like Nvidia and AMD.
Stocks fell after the opening bell Friday but will end on another positive week.
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Americans picked up their spending from October to November as the unofficial holiday season kicked off, underscoring that shoppers still have power to keep buying.
The average long-term U.S. mortgage rate dropped below 7% to its lowest level since early August, another boost for prospective homebuyers who have largely been held back by sharply higher borrowing costs and heightened competition for relatively few homes for sale.
