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.
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
