Netflix Blows Out Q2 Streaming Sub Estimates

Netflix overwhelmingly beat its projections for new subscribers this quarter, an impressive feat considering that Q2 has traditionally been its slowest quarter for adding subscriptions.

But Swiss broker UBS reckons the group will report 2.6 mln subscriber adds in this latest second quarter "due to a very strong original content slate and easy churn comparisons". DiClemente is forecasting global subscriber additions of 2.65 million, above Wall Street's 2.59 million consensus and Netflix's guidance for 2.60 million subscribers. Oregon Public Employees Retirement Fund raised its position in shares of Netflix by 1.3% in the second quarter.

In the fourth quarter, Netflix offers fans plenty to look forward to, including a new season of "Stranger Things" and Marvel's "The Punisher".

Netflix (NASDAQ:NFLX) shares raced up nearly 10% after-hours as it posted second quarter earnings, which showed subcriptions rising sharply. The stock rose by 10% and reached $178.55.

Netflix expects foreign growth to bring its first full-year profit for overseas markets in 2017, the company said in a letter to shareholders. The legal version of this story can be viewed at The Internet television network reported $0.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.37 by $0.03.

CEO Reed Hastings first announced Netflix's 100-million-member milestone in April, days after Netflix's last earnings announcement. 17,496,685 shares of the stock traded hands. The firm had revenue of $2.64 billion for the quarter, compared to the consensus estimate of $2.64 billion. Insiders sold a total of 421,458 shares of company stock worth $64,206,893 in the last quarter.

Netflix said it will continue to invest heavily in original content, borrowing money to supplement its cash flow.

The results moved analyst Tuna Amobi of CFRA to increase his 12-month target price for the stock by $25 - to $200 per share. "We believe Netflix is firing on all cylinders, with a robust original content pipeline buoying domestic subscribers, expanded localization efforts increasing worldwide penetration and long-term building blocks being put in place to solidify sustainable growth", Graham wrote in a note to investors.

Vanessa Coleman