Netflix reported better-than-expected earnings results Tuesday afternoon. Its shares rose in after-hours trading.
The streaming video provider reported fourth-quarter earnings per share of $4.27, compared to Wall Street’s consensus estimate of $4.21, according to FactSet. Revenue for the quarter reached $10.25 billion, which was above analysts’ expectations of $10.1 billion.
Netflix stock rose as much as 10% in late trading following the release.
This is breaking news. Read a preview of Netflix earnings below and check back for more analysis soon.
Wall Street is expecting strong results from Netflix, reasoning that a robust slate of recent original shows and live events has encouraged people to sign up.
For the fourth quarter, the analyst consensus is for the company to report revenue of $10.1 billion with earnings per share of $4.21. The Street has penciled in a net gain of 9.8 million paid subscriptions.
Analysts expect EPS of $5.97 and $10.5 billion in revenue for the current quarter, according to FactSet.
Last week, Oppenheimer analyst Jason Helfstein reiterated his Outperform rating for Netflix, citing the success of its latest wave of content. He expects subscriber numbers to come in ahead of expectations for the December quarter, riding gains from content such as Squid Game Season 2 and the Jake Paul-Mike Tyson fight.
“We continue to see Netflix benefiting from less competition driving better [subscriber] churn and content leverage,” he wrote.
The analyst said Netflix could reveal details about its advertising revenue and unveil possible future live events. Live events could be a key area for the company to retain and acquire new subscribers going forward, he added.
Netflix shares are up nearly 80% over the past 12 months.