Netflix and IBM Reports Fourth Quarter Earnings

On Tuesday, Netflix reported its fourth quarter earnings, posting a big earnings beat of 7 cents per share.

Netflix continues to expand its business globally and that increases its net subscribers. In the Q4, the company crossed expectations adding 5.59 million subscribers. That also beat the company's previous guidance of 5.15 million for the quarter.

The international net additions touched four million which was also a figure that was better than expected. That also helped Netflix cover for a slip in the United States U. S. where the net addition was 1.56 million lower than the expected
1.62 million.

The company expected a four to five percent increase in average subscriber revenue in the U. S. mainly as subscribers upgraded to the Ultra HD Plan.

IBM also reported its fourth quarter earnings on Tuesday beating the bottom line at $4.84 per share with $22.06 billion revenues. The revenue missed the expectorations slightly.

However, a most segment-by-segment breakup of numbers from IBM does not look as impressive. The services division dropped seven percent in the Q4 and there was a ten percent dip in the International Business Services with Software slipping eleven percent.