Earnings Results: Netflix earnings send stock surging, suggest huge decline was ‘an aberration’

Investors wasted no time after Netflix Inc. NFLX, +3.98% announced it beat third-quarter earnings expectations Tuesday afternoon, sending shares of the streaming giant up 11% in after-hours trading.

Netflix reported adding a net 6.96 million subscribers in the most recent quarter, with 1.09 million coming from the U.S. and 5.87 million coming from overseas, soundly beating the FactSet consensus of 5.32 million and the company’s own forecast of 5 million. Netflix missed subscriber growth expectations last quarter, which sent the stock into a nosedive.

“One of the big questions after they missed the earnings and membership numbers in Q2 was whether it was just an aberration or a sign of weakening business,” Forrester principal analyst Jim Nail said.

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