Netflix (Nasdaq: NFLX) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Netflix beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly, and earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Netflix recorded revenue of $875.6 million. The 30 analysts polled by S&P Capital IQ anticipated net sales of $857.2 million. Sales were 47% higher than the prior-year quarter's $596.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.73. The 26 earnings estimates compiled by S&P Capital IQ forecast $0.57 per share. GAAP EPS of $0.73 for Q4 were 16% lower than the prior-year quarter's $0.87 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 34.3%, 10 basis points worse than the prior-year quarter. Operating margin was 8.1%, 510 basis points worse than the prior-year quarter. Net margin was 4.7%, 320 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $867.3 million. On the bottom line, the average EPS estimate is -$0.27.

Next year's average estimate for revenue is $3.65 billion. The average EPS estimate is -$0.23.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 7,706 members out of 9,448 rating the stock outperform, and 1,751 members rating it underperform. Among 2,671 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 2,395 give Netflix a green thumbs-up, and 276 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Netflix is hold, with an average price target of $76.30.

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