Netflix wowed Wall Street on Monday, adding more US subscribers and ringing up higher revenue and profits than expected.
Total domestic subscribers for the video-streaming giant as of Sept. 30 jumped past those of pay-TV rival HBO — fueling a nearly 11-percent spike in the shares of the Los Gatos, Calif., company in after-hours trading, to $393 a share.
This after Netflix stock hit a 52-week high during the normal trading day.
The streaming-media giant reported 31.09 million domestic customers (including free trials), slightly beating expectations.
By comparison, Time Warner’s HBO, which sells its service on top of tiered pay-TV packages, had 28.9 million domestic subscribers, according to SNL Kagan.
But even with the boffo quarter, Netflix CEO Reed Hastings, who loves to compare Netflix to HBO, trailed his rival in many ways.
For example, HBO, home to “Game of Thrones” and “Girls,” reels in some $1.6 billion in annual profits, according to Kagan.
Netflix estimated profits for 2013 are just $100.1 million.
In his shareholder letter, Hastings lays out his goal to catch his rival HBO on every count — but doesn’t mention the bottom line.
“We have a long way to go to match HBO’s 114 million global member count or their well deserved Emmy leadership. Title by title, device by device, member by member, award by award, country by country, we are making progress.”
Netflix has 40.3 million global customers.
Still, the market loved the numbers. Netflix beat earnings expectations, turning in 52 cents a share versus forecasts for 47 cents. Net income was $32 million, up from $8 million in the year-ago period. International subscribers grew to 9.19 million.
Netflix shares are up a dazzling 283 percent year-to-date.
Separately, Hastings dispelled several ideas that have been floated in the press, saying Netflix would not be a home for sports — a rumored NFL pact had been suggested by some outlets.
Surprisingly, the CEO pooh-poohed the idea that pay-TV customers are dumping video subscriptions.
“There is no cord cutting,” he said.
Netflix recorded 5 billion hours of usage this quarter and plans to double its spending on original productions in 2014 on, among other things, a second season of “House of Cards.”