Netflix, Inc. (NASDAQ: NFLX) enjoyed good vibes Tuesday morning, after release of stronger-than-expected sales for its second quarter. However, the company slightly missed earnings estimates. Netflix added 1.07 million subscribers domestically, with 4.14 million users added internationally, compared to the Wall Street consensus of 3.2 million driven by international subscriber growth.
Earnings Per Share came in at 15 cents per share vs. 16 cents per share, adjusted, expected by a Thomson Reuters consensus estimate. Revenues were $2.79 billion vs. $2.76 billion expected by a Thomson Reuters consensus estimate. That's compared with earnings of nine cents per share on revenue of $2.11 billion in the year-ago period.
Analysts emphasized the importance of Netflix's high quality original content such as "Orange is the New Black," "13 Reasons Why" and "House of Cards" which sparked the positive results.
The streaming giant is one of the market's best-performing names as its shares have rallied more than 30% this year through Monday versus the S&P 500's 10% return. Shares hit an all-time high of $178.39, climbing $16.69, or 10.3% Tuesday morning.
Morgan Stanley reiterated its overweight rating for Netflix and raised its price target for the shares to $210 from $185. Goldman Sachs also reaffirmed its buy rating and increased its price forecast to $200 from $175. Netflix shares closed at $161.70 on Monday.
Netflix noted how the second quarter broke two important records for the company.
"We also crossed the symbolic milestones of 100 million members and more international than domestic members. It was a good quarter," Netflix wrote its shareholder letter for the second quarter.
