NETFLIX Q3 FY 2010 EARNINGS ANALYSIS
Netflix had an outstanding quarter, 3Q10, based on adding more subs than forecasted and being on the high end of top and bottom line guidance, see chart: 3Q10 Guidance vs. Actual Low End High End Actual % Beat of High End Subscribers* 16,300 16,700 16,933 1.40% Revenue** 546 554 553.2 -0.14% GAAP Net Income** 33 40 38 -5.00% * In thousands ** In millions Whenever a company meets or beats for the high side of all guidance and then raises guidance for the following quarter, the stock price has no choice but to move upward. I have touched on the current and near term catalysts for the company. International Expansion: Q3 was the host of expanding subscriber services to Canada (pop. 30MM). This is essential to accelerating growth in the company because as markets such as Canada expand, it will allow Netflix to combat USA market saturat...