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Netflix, Inc. (NASDAQ:NFLX) Earnings Easily Surpass Street expectations

Netflix, Inc.(NASDAQ:NFLX) said on Monday that it earned 31 cents a share on revenues of $1.02 billion. This was definitely above expectations as analysts had estimated earnings at 19 cents a share on sales of $1.02 billion.

The company said that earnings were affected by a `debt extinguishment cost’.

For the second quarter, Netflix said it expects earnings to be between 23 cents and 48 cents per share on a revenue range between $821 million and $843 million. Analysts are looking for earnings of 30 cents per share on $1.056 billion in revenue.

Chief Executive Reed Hastings said in a letter to shareholders – “Our U.S. streaming business achieved strong growth in Q1. We added over 2 million members to the service, launched to great reception our first Original series of 2013 House of Cards, and improved our streaming contribution margin above our 100 bps target.”

The better-than-expected earnings led a surge in the shares of the video streaming services provider by more than a fifth to $214.19 on the exchange.

The company had over 36 million streaming subscribers at the end of the quarter, up 3.05 million from the previous quarter.

Hasting also commented about the response that the company’s original series were receiving. Its original series are House of Cards and Hemlock Grove.

“On February 1, we premiered all 13 episodes of House of Cards to enormous popular and critical acclaim,” Hastings said. “The global viewing and high level of engagement with the show increased our confidence in our ability to pick shows Netflix members will embrace and to pick partners skilled at delivering a great series.”

The next original series will be the fourth season of Arrested Development.

Shares of the company are up a whopping $41.68 or 24% at $216.03 in pre-market trading.

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