Shutterstock photo
Markets

Shares in Netflix soar more than 10%, as international viewership spikes

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com -- Shares in Netflix (NASDAQ:NFLX) soared more than 10% in after-hours trading, as a spike in international membership offset lower than expected earnings.

Neflix met analyst forecasts with quarterly revenues of $1.47 billion, but posted disappointing earnings per share due to substantial foreign exchange losses. The California-based company reported earnings of 0.38 per share for the quarter, down from 0.86 during the same period last year. Netflix adjusted the figure to 0.77 a share when it was based on foreign exchange rates during the first quarter of 2014.

Investors quickly brushed aside the disappointing earnings. During the period, Netflix gained 2.6 million viewers overseas topping forecasts of 2.25 million. Overall, Netflix gained 4.9 million members pushing global viewership over 62.0 million. The company expects even more robust growth internationally after it launched its service in Australia and New Zealand in late-March. The region adds approximately 8 million broadband households to Netflix global scope, the company said in a statement.

Netflix also welcomes the intense competition it figures to encounter from HBO following the launch of its highly-anticipated HBO Now service last week.

"I think HBO at $15 is a great value, I typically pay more than $15 to my cable company per month. I think they're doing great work, they're bringing in great content," Netflix CEO Reed Hastings said in a You Tube interview with RBC Capital Markets following the earnings release. "It does create an obvious underline on just how the value is for Netflix with prices ranging from $7.99 to $11.99. We're really comfortable with our strategy, we're continuing to grow with our strategy. It is incredible value."

Shares in Netflix surged more than 13% to $536.61 in after-hours trading, before falling back to $528. Prior to the release, Netflix shares were up more than 38% on the year.

Last Friday, Netflix experienced unusually high option volume after SEC filings indicated that the company is exploring a stock split. Netflix confirmed in the report that it is seeking shareholder approval for an increase in authorized shares. The company said in a statement that it will recommend a stock split to its Board, pending shareholder approval.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com apps for Android and iOS!

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.

Other Topics

ForEx