Netflix Inc. (NASDAQ: NFLX | NFLX Price Prediction) 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.
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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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