Netflix's stock soars on big 4Q subscriber gains (Update)

Jan 23, 2013
This image released by Netflix shows Kevin Spacey in a scene from the Netflix original series, "House of Cards," an adaptation of a British classic. (AP Photo/Netflix, Melinda Sue Gordon)

Netflix's Internet video service warded off stiffer completion to add 2 million U.S. subscribers during the final three months of the year to produce an unexpected profit for the company.

The fourth-quarter performance announced Wednesday validates investors' recent confidence in Netflix Inc., whose volatile stock had surged by more than 30 percent since early December. The stock soared another $34.49, or 33 percent, to $137.75 in extended trading after the numbers came out. If the shares trade similarly in Thursday's regular trading session, it will propel Netflix's stock a new 52-week high.

The surge in new customers left Netflix with 27.1 million U.S. subscribers to its service that streams movies and TV shows to Internet-connected devices.

Netflix's expansion also gathered more momentum as the company ended the quarter with an additional 1.8 million subscribers outside the U.S.

That means Netflix entered this year with 33.3 million video-streaming subscribers worldwide.

Netflix also still has 8.2 million customers signed up for the DVD-by-mail rental plans that launched the company's early success. Although Netflix is phasing out the disc service, the company hung on to more of the DVD subscribers than it anticipated during the fourth quarter. Netflix lost 382,000 DVD subscribers during the quarter.

Netflix earned nearly $8 million, or 13 cents per share. That was a 78 percent plunge from net income of $35.2 million, or 64 cents per share, at the same time last year.

Taking their cue from Netflix's own projections in October, analysts polled by FactSet had predicted the company's would lose 12 cents per share as expenses for the international expansion and video-licensing rises outpaced revenue growth.

Revenue climbed 8 percent from the previous year to $945 million.

Netflix appears confident that its recent momentum will carry into the current quarter, which will be highlight by the Feb. 1 debut of a much-anticipated TV series called "House of Cards" produced exclusively for the video streaming service. The series stars Academy Award-winning actor Kevin Spacey.

Explore further: Constantly changing online prices stump shoppers

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Ahead of the Bell: Netflix to unveil 1Q results

Apr 23, 2012

(AP) -- Investors will be focusing on how many customers Netflix has been adding and how much money the company has been losing when the video subscription service releases its first-quarter results.

Netflix stock surges with Internet video streaming

Jan 05, 2012

(AP) -- Netflix has released some statistics that indicate the video subscription service must be doing something right, even though investors and customers have been ridiculing it for much of the past six months.

Netflix unveils video service in UK, Ireland

Jan 09, 2012

(AP) -- Netflix's Internet video service made its debut in the United Kingdom and Ireland Monday as part of a previously announced expansion that is expected to saddle the company with its first annual loss in a decade.

Netflix 2Q profit shines, stock still loses luster

Jul 21, 2010

(AP) -- Netflix Inc.'s second-quarter performance got panned by investors Wednesday for bringing in less revenue than expected, even though the movie subscription service added a million more customers to ...

Recommended for you

Constantly changing online prices stump shoppers

32 minutes ago

Online shopping has become as volatile as stock market trading. Wild, minute-by-minute price swings on everything from clothes to TVs have made it difficult for holiday shoppers to "buy low."

'Interview' ordeal at Sony just its latest crisis

3 hours ago

How do you say "damage control" in Japanese? Sony Corp. is sealed within a hermetic cone of silence as executives try to prevent the slow motion train wreck at Sony Pictures from damaging the rest of the ...

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

holoman
not rated yet Jan 23, 2013
Netflix is the best !

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.