Netflix Inc. (NASDAQ: NFLX) released its third quarter earnings report after the markets closed on Tuesday. The online streaming giant posted $0.89 in earnings per share (EPS) and $4.0 billion in revenue, which compares with consensus estimates from Thomson Reuters that are calling for $0.68 in EPS and $4.0 billion in revenue. The company reported that it had $0.29 in EPS and $2.98 billion in revenue for the third quarter last year.

During the second quarter, global net adds totaled 6.96 million. In the United States, Netflix added 1.09 million memberships. Internationally, the firm added 5.87 million memberships.

Note that Netflix now has a total of 137.10 million total memberships worldwide.

Looking ahead to the fourth quarter, the company is calling for $0.23 in EPS on $4.20 billion in revenue. At the same time, the company is expecting to see net adds of 9.4 million. There are consensus estimates calling for $0.51 in EPS on $4.23 billion in revenue.

Reed Hastings, Chairman, President and CEO, commented on the increased competition:

As internet entertainment grows, more companies see the large opportunity. Content companies such as WarnerMedia and Disney/Fox are moving to self-distribute their own content; tech firms like Apple, Amazon and others are investing in premium content to enhance their distribution platforms. Amid these massive competitors on both sides, plus traditional media firms, our job is to make Netflix stand out so that when consumers have free time, they choose to spend it with our service.

Shares of Netflix closed Tuesday at $346.40, with a consensus analyst price target of $379.73 and a 52-week range of $178.38 to $423.21. Following the announcement, the stock was up 14% at $395.01 in the after-hours trading session.

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