Netflix Reports Earnings, Surpasses 50M; TXN Beats - Analyst Blog

Streaming media giant Netflix ( NFLX ) reported Q2 earnings and sales after the closing bell Monday: earnings per share (EPS) of $1.15 on $1.34 billion in revenues amounted to a mixed result compared with the Zacks consensus -- a penny beat on the bottom line and a slight miss on the top. After-market shares were up moderately on the news.

For such a big name in growth companies, however, analysts and investors are all focused on Netflix's subscriber numbers and expansion plans. In Q2, the company pushed just past 50 million total subscribers (domestic and international), up from 48 million at the end of Q1. Net additions in the quarter reached 1.69 million. This subscriber growth, while still impressive by most metrics, represents a slowing down that the company had guided toward earlier. In Q1, Netflix gained 4 million new subscribers.

As for expansion, Netflix's international market -- while not yet demonstrating profitability -- will include a push into markets in Germany and France this September. The company has also announced another price increase, making sure to cite that the most recent price increase had no notable negative effect on company business.

With shares once again pushing up against all-time highs, however, investors may now been slightly wary about Netflix's performance for the first time in about two years. Recall that several of its earnings reports in the recent past were of the double-digit variety. Although as of now in late-day trading, no one seems to be penalizing NFLX shares for underperforming.

Also after the bell, Texas Instruments ( TXN ) posted a beat on top and bottom lines on improved Analog and Embedded Processing offerings. These businesses now make up 82% of TI's business, helping lead the company to an all-time high gross margin of 57.1%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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