Netflix Inc. (NASDAQ: NFLX) released its fourth quarter earnings report after the markets closed on Thursday. The online streaming giant posted $0.30 in earnings per share (EPS) and $4.19 billion in revenue, which compares with consensus estimates from Thomson Reuters that are calling for $0.24 in EPS and $4.21 billion in revenue. The company reported that it had $0.41 in EPS and $3.29 billion in revenue for the third quarter last year.
During the fourth quarter, global net adds totaled 8.8 million. In the United States, Netflix added 1.5 million memberships. Internationally, the firm added 7.3 million memberships.
Note that Netflix now has a total of 139.26 million total memberships worldwide.
Looking ahead to the first quarter, the company is calling for $0.56 in EPS on $4.49 billion in revenue. At the same time, the company is expecting to see net adds of 8.9 million. There are consensus estimates calling for $0.83 in EPS on $4.61 billion in revenue.
Reed Hastings, Chairman and CEO of Netflix, commented:
Our multi-year plan is to keep significantly growing our content while increasing our revenue faster to expand our operating margins. We’re targeting a 9% operating margin in Q1’19, which we expect will grow over the course of the year and our full year operating margin target for 2019 remains 13% vs. 10% in 2018. A majority of our revenue is not in dollars, so when there are materials FX moves, investors know to expect proportionate top line changes. In such FX cases, we’ll seek to adjust our prices and costs over time, but since that will lag the revenue changes, and since we don’t hedge FX, this would lead to short-term margin variations from our steady progression.
Shares of Netflix closed Thursday at $353.19, with a consensus analyst price target of $380.95 and a 52-week range of $216.55 to $423.21. Following the announcement, the stock was initially down over 3% at $340.95 in the after-hours trading session.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.