Another Netflix Inc.NFLX +1.53% quarterly report, another big stock move.
Shares spiked Wednesday after the bell after Netflix reported quarterly results that exceeded analysts’ expectations, upbeat subscriber figures and an optimistic outlook.
The stock jumped 18% to $392 in after-hours trading. If the gains hold, Netflix is poised to open Thursday at a fresh record high.
Netflix reported a fourth-quarter profit of $48.4 million, or 79 cents a share, up from $7.9 million, or 13 cents a share, in the year earlier period. Revenue jumped 24% to $1.18 billion.
Analysts polled by Thomson Reuters anticipated Netflix earned 66 cents a share in the fourth quarter, on revenue of $1.17 billion.
Netflix reported 2.33 million domestic subscribers were added in the fourth quarter. Its projecting another 2.25 million U.S. streaming subscribers were added in the current quarter, which would bring its total to 34.3 million paying domestic subscribers.
Internationally, Netflix added about 1.7 million subscribers in the latest quarter, and sees 1.6 million net additions in the current quarter. It ended the fourth quarter with more than 9.7 million paid members abroad, slightly better than forecast.
The better-than-expected results and the surging stock price come after shares surged 298% last year and peaked at $389.16, making Netflix the top performer in the S&P 500 and the Nasdaq 100. Booming subscriber growth and an increase in original programming were key drivers of the stock’s move back above $300.
As we reported earlier Wednesday, Netflix’s stock historically is volatile after it reports earnings. Since 2002 when Netflix went public, its shares have had the most volatile reaction to quarterly results, on average, compared to any other stock in the S&P 1500 (a bigger index than the more widely followed S&P 500), according to data compiled by Bespoke Investment Group.
Netflix averages a 14.4% swing following its quarterly results. By comparison, stocks on average swing 5% after quarterly results are released. Stocks in the S&P 500 technology sector — which are the most volatile of the 10 large-cap sectors — average a 6.7% swing after earnings.
