Netflix announced an upbeat forecast for new subscribers for mid-year, which was a positive sign for investors in the company’s push to expand across the globe. That helped to send its shares up toward a new high of all-time for the company.
The streaming video business pushed the upcoming season of its highly popular House of Cards, as well as other programming to its second quarter, which means it attracted less new customers during the first three-month period than was expected, but will make up for that in its April through June quarter.
Subscriber rolls, which are the most closely watched metric for growth of Netflix, increased by 5 million worldwide during the first three months of 2017, slightly less than analyst’s projections of 5.17 million.
However, the forecast by Netflix for 3.2 million more during the second quarter, which is seasonally slow, far more than estimates by analysts of only 2.4 million.
Its shares fell by up to 3% during trading after hours prior to rebounding to a 1.3% gain. The rise late in afterhours trading put the stock on track to reach a record high during Tuesday trading.
Ten years after rattling Hollywood through the delivery of movies and TV shows via Internet, Netflix said it is expecting to pass the 100 million subscriber mark globally this weekend.
Netflix expanded into most of the world during the past couple of years, betting that its successful formula for the U.S. would work globally. Opening in other new markets as well as creating its own shows in more languages was expensive for the company.
CEO Reed Hastings urged Netflix investors to examine its growth over a longer period than the usual viewing of fluctuations that take place each quarter.
In its letter it sends out to shareholders each quarter, Netflix asked its investors to judge future success through looking at growth in revenue and its global operating margins.
If that is done it would be a big shift for Wall Street as it has focused mainly on the numbers of subscribers, said one analyst on Wall Street Monday evening.
The company, based in Los Gatos, California, said its net income increased to just over $178 million equal to 40 cents a share. That was in comparison to $28 million equal to 6 cents a share for the same period one year ago. Wall Street was expecting net income of 37 cents a share.
Revenue increased 35% to end the $2.64 billion.