Netflix Q1 results beat expectations
Net income grows by 44%; shares jump after closing bellNetflix continued its winning ways Wednesday, reporting first-quarter financial results that beat expectations and propelled its soaring stock higher during after-hours trading.
At the closing bell, Netflix shares were down fractionally at $86.98, but they gained $1.13 after the closing bell, putting them just shy of an all-time high. In September 2002, a few months after Netflix went public, its stock traded for $3 or so.
The company's net income grew 44% to $32.3 million on revenue that rose 25% to $493.7 million.
Netflix ended the quarter with nearly 14 million subscribers -- up 35% compared with a year ago -- and said it expects to end the year with as many as 17.3 million, up from its previous estimate of 16.3 million.
Netflix has been battling Blockbuster for domination of the video-rental industry -- Blockbuster's market cap was $101 million Wednesday, compared with Netflix's $4.7 billion -- but it also faces attacks from Redbox and other kiosk operators.
On that front, NCR recently said it is testing kiosks that allow users to download movies, TV shows and music to SD memory cards and USB memory sticks. Initially, it is installing the download kiosks at 35 U.S. airports.