Netflix Inc. Reported 2QFY15 Earnings

Netflix net adds and profits,  top estimates.

On Wednesday, Netflix Inc. reported its second quarter financial results for fiscal year 2015, the streaming giant topped the earnings estimates and hardly missed revenue forecast as it continues to expand its original content.

The online streaming company reported earnings of $0.06 per share compared to $0.16 per share in the quarter year earlier.

Revenues for the company came in at $1.64 billion more than $1.34 billion in the prior year quarter. Revenue from international market increased by $0.48 during the period in spite of the currency headwinds.

Analysts had forecasted the company to post earnings per share of $0.04 on revenue of $1.65 billion, as per the consensus estimate by Thomson Reuters.

Netflix reported 3.28 million new record net additions, surpassing all the estimates. Analysts had forecasted 2.46 million net additions, as per FactSet.

Christine Short, senior vice president at Netflix Inc. said, "We know the subscriber numbers are almost more important than the actual fundamentals. It's the barometer for the return on investment of their original content, which has been widely popular."

The company is increasingly facing competition from rivals such as Amazon, which has been emphasizing more on its original content programming, along with new services like Showtime Anytime and HBO Now.

During the start of the week, Comcast declared a latest video streaming service which will allow its users to watch TV online from around a dozen of networks. The service is called as Stream, which will be introduced in Boston by the end of summer with $15 a month price tag.

Earlier last week, Netflix Inc. declared a roll out of its next batch of original movies. The streaming giant announced 4 feature length films, namely, "Beasts of No Nation," which will be premiered later in October, both in selected United States theatres and on Netflix internally.

For the third quarter of fiscal year 2015, the company anticipates earnings of 7 cents per share more than 5 cents a share estimated by analysts.

Netflix stock was down 2.23% to $98.13 at market close on Wednesday, while it went up by $12.15 during pre-market trading today as of 5:16 AM EDT.