San Francisco (Web Desk): Netflix announced on Wednesday that it had added nearly 7.1 million subscribers worldwide, increased surged past expectations for the fourth quarter well above its forecast additions of 5.2 million for the quarter.
After-hours trading Wednesday, the news sent shares of Netflix soaring, with the stock climbing more than 8% to $144.
Earlier the company had earnings per share of 7 cents in the year-ago quarter but now the Los Gatos, Calif.-based streaming TV giant posted net income for the fourth quarter of $67 million, with earnings per share of 15 cents, beating guidance and analyst estimates of 13 cents per share.
A year ago streaming revenue for the quarter was $2.4 billion, up more than 40%. Netflix was boosted in the quarter by the debuts of such high-profile shows as “The Crown,” its dramatic series about Queen Elizabeth II, as well as the new “Gilmore Girls.”
Additionally, the distinguished premieres included the incarceration documentary “13th,” the Barack Obama biopic “Barry” and the kids-oriented animated series “Trollhunters” from Dream Works Animation.
Important thing is that the number of overseas subscriber was larger than others. Netflix has continued to ramp up its international operations and local-language initiatives as its U.S. subscriber growth slows. Overseas subscriptions climbed by 5.1 million during the quarter, while U.S. subscriptions rose by about 1.9 million.
Europe and Latin America are main areas where the company is expanding insistently, but it has yet to tap into China due to what it said is a tough regulatory environment for foreign streaming services.
Netflix claimed it added 19 million new subscribers worldwide, versus 17.4 million in 2015 during 2016. The worldwide membership of Netflix stands at 93.8 million and is poised for further growth.
An analyst at Guggenheim Securities Michael Morris said in a research report this week "Netflix remains in the earlier stage of realizing the value of its global leadership position in Internet TV".
Co-founder and Chief Executive Reed Hastings said during an investor call Netflix will continue to focus on “more content, better product”.
Earlier, Netflix signed collaboration agreement with PTCL to broadened its area of influence in Pakistan and still launching Pakistani dramas on Netflix.