Shares of Netflix (NFLX) are up 6% after the movie and television streaming service reported third-quarter financial results that beat Wall Street’s consensus forecasts.
The company announced earnings per share (EPS) of $5.40 U.S., which topped the $5.12 U.S. that was expected among analysts.
Revenue during the quarter totaled $9.83 billion U.S., which beat the $9.77 billion U.S. consensus estimate on Wall Street.
Total paid subscribers at Netflix came in at 282.7 million, narrowly beating Wall Street’s forecast for 281.7 million.
On an earnings call with media and analysts, Netflix executives said that they achieved success with new series such as “The Perfect Couple” and “Nobody Wants This,” along with older programs such as “Emily in Paris” and “Cobra Kai.”
Netflix also reported that its advertising supported membership tier, which it launched last year, grew 35% quarter-over-quarter in the July through September period.
Management said that the ad-supported tier accounted for more than 50% of new sign-ups to the streaming service in the third quarter.
Looking ahead, Netflix executives said they expect revenue to rise 14.7% to $10.13 billion U.S. in the current fourth quarter. That’s ahead of $10.04 billion U.S. forecast among analysts.
For 2025, Netflix forecast a revenue range of $43 billion U.S. to $44 billion U.S., which is in line with the $43.5 billion U.S. consensus forecast of Wall Street.
Management added that they’re targeting an operating profit margin of 28% in 2025 compared to 27% this year and have plans to raise prices in some markets.
Prior to today (Oct. 18), the stock of Netflix had risen 47% this year to trade at $687.65 U.S. per share.
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