Shares of Netflix Inc. (NASDAQ:NFLX) leaped nearly 10 percent in extended-hours trading Wednesday after the movie-streaming service beat Wall Street earnings estimates, driven by the company’s original programming, including the launch of the third season of “Orange is the New Black.” Netflix topped 65 million subscribers globally during the January-March quarter, up from 50 million a year earlier, as original shows such as "House of Cards" drew new viewers worldwide.
Meanwhile, the company attributes recent strong U.S. and international growth to the first seasons of “Marvel’s Daredevil,” “Sense8,” “Dragons: Race to the Edge” and “Grace and Frankie.” Netflix gained 900,000 members in the U.S. and added 2.4 million members internationally in the quarter, the company said.
The stock rallied 9.5 percent to as high as $108.65 in after-hours trading.
For the March-June quarter, Netflix reported fiscal second-quarter net income of $26 million, or earnings per share of 6 cents, on revenue of $1.5 billion, compared with a profit of $71.02 million, or earnings per share of 16 cents, on revenue of $1.3 billion a year ago.
Wall Street had projected Netflix to report net income $20.9 billion, or earnings per share of 5 cents, on revenue of $1.6 billion, according to analysts polled by Thomson Reuters.
The company announced it approved a seven-for-one stock split last month, in the form of a dividend of six additional shares for each outstanding share. The dividend is payable Tuesday, with trading at the post-split price Wednesday.
Netflix, which has a market value of $42 billion, is currently the best performer this year in the Nasdaq 100, an index that tracks the largest nonfinancial Nasdaq companies. The stock has soared just over 100 percent since January.
Also after the closing bell shares of chipmaker Intel Corporation (NASDAQ:INTC) leaped as much as 8 percent to $32.04 in extended-hours trading Wednesday after the world’s largest maker of semiconductors posted earnings and revenue above Wall Street expectations, despite sluggish sales in its personal computer business.
"Second-quarter results demonstrate the transformation of our business as growth in data center, memory and IoT [Internet of Things] accounted for more than 70 percent of our operating profit and helped offset a challenging PC market," Intel CEO Brian Krzanich said in a statement Wednesday.
The company said its Internet of Things business helped boost revenue growth as the devision’s sales grew to $559 million, up 4 percent from a year ago. During a conference call with shareholders, the company warned it expects the personal computer market to be weaker than previously forecast for 2015.
Meanwhile, the U.S. dollar has gained strength this year, which isn’t exactly good news for corporate bottom lines. A prolonged period of dollar strengthening would also hurt U.S. multinational corporations once they convert foreign revenue to dollars. That will slow earnings growth. More than 80 percent of Intel's sales come from overseas.
Intel reported fiscal second-quarter net income $2.7 billion, or earnings per share of 55 cents, on revenue of $13.2 billion, compared with a profit of $2.8 million, or earnings per share of 55 cents, on revenue of $13.8 billion a year ago.
Wall Street had projected Intel to report second-quarter net income $2.5 billion, or earnings per share of 50 cents, on revenue of $13.04 billion, according to analysts polled by Thomson Reuters.
Shares of Intel have lost 18 percent so far this year.