Netflix (NFLX) shares are soaring over 12% after hours to $389 following the company's third-quarter earnings release that easily bested analysts' estimates on subscriber growth and earnings per share.
The streaming video leader, headquartered in Los Gatos, Calif., reported earnings per share of $0.89, cruising past the FactSet consensus of $0.68, and crushed subscriber growth estimates by adding nearly 7 million subscribers against expectations of 5 million.
Quarterly revenue was in line with estimates of $4 billion.
The company's guidance for the fourth quarter is likewise well beyond estimates of 7.7 million subscriber adds. Netflix forecasts it will add 9.4 million net subscribers in the fourth quarter, compared with 8.3 million last year.
The company did report massive capital expenditures which left it with $859 million negative cash flow. The company is anticipating between $3 and $4 billion of negative free cash flow for the year.
The expenditures come from a drive further into original programming, which is becoming a necessity as content providers like Disney (DIS) begin to make their own rival products.
CEO Reed Hastings will be conducting a video interview at 6 p.m. ET with UBS Managing Director Eric Sheridan to address the earnings release. The interview will be broadcast live on YouTube.
Questions that investors would like to see asked may still be sent to firstname.lastname@example.org
For more on release in the time leading up to the presentation, follow Real Money columnist Eric Jhonsa's live blog as he pours through the details of the earnings release.