) is soaring for the second day in a row on Friday after the
company released its fiscal fourth-quarter earnings results on
Wednesday after the closing bell. The stock soared 42 percent
during Thursday's trading session and has continued to rally
sharply into Friday. At last check, shares were up more than 14
percent to around $168 after opening the day around the
The company reported a surprise profit and guided for above
consensus earnings per share in the fiscal first-quarter. In the
fourth-quarter, Netflix reported earnings per share of $0.13
which was way ahead of Street consensus which called for a loss
of $0.13 per share. Revenue in the quarter was $945.24 million
versus estimates of $934.12 million.
Net subscriber growth in the period was above previous
estimates with the company adding 2.05 million new domestic
streaming customers in the quarter. The company said that it
closed 2012 with 27.2 million U.S. online customers.
Previously, Netflix said that it expected fourth-quarter net
subscriber growth of 1.3 million to 2 million streaming U.S.
customers and could finish the year with up to 27.1 million
Looking ahead to the first-quarter, Netflix said that it sees
earnings per share of breakeven to $0.23 on revenue of $1 billion
to $1.03 billion. This is well-ahead of current consensus
estimates of a $0.09 loss on revenue of $970 million.
Netflix had a short interest above 24 percent heading into the
company's quarterly report. It would appear that the massive move
in the stock is being driven in part by heavy short covering.
Some short-sellers are experiencing significant losses in Netflix
as the stock is sitting at its best levels since September 2011
and is already up 81 percent in 2013.
While Netflix soars on Friday, market darling Apple (NASDAQ:
) remains under pressure. The company reported disappointing
earnings results on Wednesday after the market close and shares
closed down more than 12 percent on Thursday. During Friday's
trading session, Apple shares were last trading down around 1
percent after retracing earlier steeper losses.
The stock is now sitting at 11-month lows at roughly $445. The
sell off in the name is being driven by slowing growth at the
technology giant and technical factors. Apple reported net income
of $13.08 billion or $13.81 per share, versus $13.06 billion or
$13.87 per share, in the year ago period. This came in ahead of
analysts' consensus EPS estimates of $13.44.
Revenue was $54.51 billion versus $46.33 billion last year.
This came in below analysts' consensus revenue estimates of
$54.73 billion. Looking ahead to the fiscal second-quarter, Apple
sees revenue of $41 billion to $43 billion. This is below current
consensus of $45.63 billion, triggering concerns of slowing
growth at the company.
Apple shares are now down almost 17 percent in 2013 and more
than 27 percent over the last 3 months. In addition to Apple's
revenue miss in the first-quarter and its light guidance for the
second-quarter, the stock is also facing technical headwinds. The
stock has been so heavily owned on Wall Street that there are a
significant number of incremental sellers now that Apple's
uptrend has been convincingly broken.
Once downside momentum has been established in such a heavily
owned stock, it has the potential to snowball. It would appear
that this is what is taking place in Apple.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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