Netflix had a great start to trading on Friday, with shares opening more than 9% higher. That's because the company beat earnings per share (EPS) and revenue expectations for the third quarter of 2024 while also announcing a positive forecast for the fourth quarter.
The company had revenue of $9.83 billion in the quarter, beating analysts' estimates of $9.78 billion. This represents a 15% increase over the same period last year. Netflix attributes this growth primarily to its revenue-boosting initiatives - including stricter oversight of password sharing among users and offering ad-supported subscriptions - but also to price increases on select plans in the past year.
Strong year-end outlook
The company expects to reach $10.13 billion in revenue in the final quarter of this year, again exceeding analysts' estimates, who were expecting $10.01 billion. For the full year 2025, Netflix then estimates revenue between $43 billion and $44 billion, which would represent an 11% to 13% growth over…