Netflix, Inc. (NASDAQ:NFLX) has announced its earnings yesterday and the stock was on the up even before the announcement. The company has been involved in a Streaming feud with Verizon Communications Inc. (NYSE:VZ), however this announcement has made the stock surge.
Julia Boorstin of CNBC reported on the earnings and she said that the earnings look almost in line with the expectations. Netflix, Inc. (NASDAQ:NFLX) posted a revenue of $1.34 billion which is exactly the same as expected. The EPS was a little below expectations and the company gave earnings of $1.15 against the market estimate of $1.16.
She said that the subscriber number was the key and according to Netflix, Inc. (NASDAQ:NFLX), the total number of subscribers for its streaming service has crossed 50 million for the first time. The number of 50.5 million to be exact and the net addition to the subscriber list was 1.69 million. The company said to its shareholders that “Orange is the new Black” helped the addition in the streaming subscriptions especially in the United States.
“The company says it’s investing further in expansion particularly overseas noting that both Germany and France will launch in September.” Julia Boorstin stated.
She also said that Netflix, Inc. (NASDAQ:NFLX) is expecting to add 3.69 million in Q3 and the majority of that would be from overseas. Approximately 2.36 million subscribers are expected from the international expansion ventures and the company says that it would reach over 60 million broadband households in the Europe.
Boorstin said that Netflix, Inc. (NASDAQ:NFLX) announced a contribution loss of $15 million from the international expansion and she also said that these expenses will continue to mount as the company expands in the Europe.
Netflix, Inc. (NASDAQ:NFLX) stated that the increase in prices during the month of May didn’t have much impact on the stock.