Netflix (NFLX) just exploded higher.
After falling from about $460 to $346.19, the stock is heading higher in after hours. All thanks to strong earnings, and price hikes.
In its third quarter, the company posted EPS of $3.73, which beat estimates for $3.49. Revenue met expectations at $8.54 billion. Better, paid subscriptions were up to 8.8 million as compared to expectations of 6.1 million. It also forecast revenue of $8.7 billion for its current quarter, which is slightly below expectations for $8.78 billion.
Plus, as noted by Barron’s, “The company’s profitability is also improving. Netflix expects an operating profit margin of 20% for 2023, which is at the high end of its prior guidance range of 18% to 20%. Management now predicts better operating margins next year, telling investors to expect a range of 22% to 23%.”
Netflix is also raising its U.S. monthly prices on its Premium plan to $22.99 from $19.99. Its basic plan will increase to $11.99 from $9.99.
In after hours, NFLX last traded at $388.70 – up $42.51.