Netflix Inc. (NASDAQ: NFLX) reported its most recent quarterly results after the closing bell Tuesday. The firm said that it had $1.59 in earnings per share (EPS) and $6.15 billion in revenue, compared with consensus estimates that called for $1.81 in EPS and $6.08 billion in revenue. In the second quarter of last year, Netflix reported $0.60 in EPS and $4.92 billion in revenue.
In the second quarter, revenue grew 25% year over year, while quarterly operating income surpassed $1 billion. Average streaming paid memberships in this quarter rose 25% while streaming average revenue per user increased 0.4%.
During the quarter, global net subscription additions totaled 10.09 million. Note that Netflix now has a total of 192.95 million total memberships worldwide.
Looking ahead to the third quarter, the company is calling for $2.09 in EPS on $6.33 billion in revenue. At the same time, the company is expecting to see net subscriber adds of 2.50 million. There are consensus estimates calling for $2.00 in EPS on $6.39 billion in revenue.
On the books, Netflix finished the quarter with cash and cash equivalents of $7.15 billion, compared with $5.02 billion at the end of the 2019 full year.
The management team is also shuffling the deck. Now Reed Hastings will no longer be alone in his role as CEO, but Ted Sarandos will be joining him as co-CEO, as elected by the board of directors. Sarandos has been with Netflix for over 20 years. Ultimately, the board is looking to evolve Netflix’s management structure.
Shares of Netflix closed at $527.39 on Thursday, in a 52-week range of $252.28 to $575.37. The stock has a consensus price target of $466.49. Following the announcement, the stock was initially down 11% at $468.00 in the after-hours trading session.
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