Netflix reported some good financial news today, which turned out to be great news for anyone who owns NFLX shares.
That’s because the stock’s trading price just jumped $20 — or 20.2 percent — per share, thanks to a strong third-quarter in both earnings and subscriber growth.
Netflix actually doubled Wall Street earnings per share (EPS) mark, reporting 12 cents apiece versus the consensus-estimated 6 cents. Last year, the company had earned 8 cents per share in the comparable quarter.
The home to “Orange Is the New Black” and summer phenom “Stranger Things” added 3.57 million members from the end of June to the end of September. That’s roughly in line with what it had done in 2015 (3.62 million), and much better than the company fared in 2016’s Q2.
Last quarter was a big disappointment for the streaming giant, subscriber-wise. That time, the growth in subs fell 32 percent shy of expectations: Netflix had added just 1.68 million new members in the June 2016-ended quarter, finishing with 83.18 million members.
Here is the sudden leap in the stock’s trading after news of the impressive performance broke.
The growth spurt comes in after-hours trading — the U.S. stock markets closed at 4 p.m. ET today. Companies must report their earnings in off-market hours.