Thursday, January 24, 2013

NFLX Soars 33%: Q4 Beats, Q1 View Beats; No Plans for Price Hike

Shares of Netflix (NFLX) are soaring $22.53, or 22%, at $125.79 $33.54, or almost 33%, at $136.80 in late trading, after the company reported Q4 revenue of $945 million, topping the consensus $934 million, and a surprise profit of 13 cents a share, beating the expected 13-cent net loss analysts had been projecting.

The company ended the quarter with 27.2 million domestic subscribers to its streaming video service, it said, and 8.22 million domestic subscribers to its conventional DVD rental service.

For the current quarter, the company sees revenue in a range of $1 billion to $1.03 billion, and EPS of break-even to 23 cents, which is better than the consensus estimate for $970 million and a 9-cent loss.

Update: On the conference call following the report, Netflix management said the company said it had no plans to expand its overseas markets for streaming service during this quarter. The company declined to say whether it would raise its price for basic streaming video usage from the current $7.99 per month. Management said it was “happy” with that price at the moment.

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