Netflix’s 2Q earnings top analyst estimate as video service adds 1 million subscribers

Netflix’s 2Q earnings up 34 pct, topping estimates

SAN FRANCISCO — Video-subscription service Netflix Inc. added another million customers during the spring to propel its second-quarter earnings past analyst estimates.

The results released Wednesday are the latest evidence of Netflix’s growing popularity as more households embrace its combination of DVD mail deliveries and video delivered over high-speed Internet connections. The most popular subscription packages cost $9 to $17 per month.

Netflix ended June with 15 million subscribers, up from 14 million in March and 10.6 million a year ago. It marks the third straight quarter that Netflix as lured in at least 1 million more subscribers, and management expects to do it again this summer. Netflix said it expects to have from 16.3 million to 16.7 million subscribers by the end of September.

The company earned $43.5 million, or 80 cents per share, in the second quarter, a 34 percent increase from $32.4 million, or 54 cents per share, a year ago.

The performance easily exceeded the average earnings estimate of 70 cents per share among analysts polled by Thomson Reuters.

Revenue, though, didn’t hit analysts targets. It still increased 27 percent to $520 million, about $4 million below analyst projections. It was $408.5 million in the same period last year.

That shortfall seemed to disappoint investors. Netflix shares fell $5.99, or 5 percent, in extended trading after the release of results. Earlier, it finished the regular session at $119.65, down 74 cents. The stock price has more than doubled so far this year.