Shares of video streaming giant Netflix, Inc. (NASDAQ:NFLX) spiked nearly 20 points, or 19.78%, at $119.54 in late trading on Monday following the release of the company’s third quarter 2016 earnings results.
The Los Gatos, California-based firm handed in earnings of $0.12 per share on revenue of $2.29 billion, beating Wall Street estimates of $0.05 per share on revenue of $2.28 billion.
Unlike last quarter’s poor subscriber growth performance, Netflix said in Q3 it had 370,000 new additions in the U.S. versus company forecast of 300,000 and 3.2 million members internationally versus forecast of 2.0 million.
In a letter to shareholders, CEO Reed Hasting said that in the third-quarter, quarterly global streaming revenue exceeded $2 billion for the first time, jumping 36 percent on a year-over-year basis, as new original series such as ‘Stranger Things’, ‘The Get Down and Luke Cage’, along with the second season of ‘Narcos’, helped attract new subs.
“Our over-performance against forecast (86.7m total streaming members vs. forecast of 85.5m) was driven primarily by stronger than expected acquisition due to excitement around Netflix original content,” Hasting noted.
For the current quarter, the $310 billion market cap company expects to add 5.2 million subscribers, above forecast for 4.59 million. The management also gave its bottom line range of $0.13 per share, against projections of $0.08 per share.