On Jan. 24, Netflix (NASDAQ:NFLX) released Q4 2005 earnings for the period ending Dec. 31.

  • In the fourth quarter, subscribers increased 60% to 4.2 million.
  • The company nearly doubled its operating cash flow during the quarter.
  • Shares were up almost 16% for the day after the announcement.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q4 2005

Q4 2004

% Change

Sales

$194,620

$195,040

$143,893

+35.5%

Net Profit

--

$38,114

$5,569

+584.4%

EPS

$0.15

$0.57

$0.09

+533.3%

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2005

Q4 2004

% Change

Gross Margin

47.08%

45.49%

+1.59%

Op. Margin

3.82%

3.26%

+0.56%

Net Margin

19.54%

3.87%

+15.67%

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2005

Q4 2004

% Change

Cash+ ST Invest.

$212,256

$174,461

+21.7%



Liabilities

Q4 2005

Q4 2004

% Change

Accounts Pay.

$63,491

$49,775

+27.6%



Cash Flow Highlights

Q4 2005

Q4 2004

% Change

Cash From Ops

$63,732

$32,537

+95.9%

Capital Expend.

$12,414

$6,941

+78.9%

Free Cash Flow

$51,318

$25,596

+100.5%

Find out why Fools always follow the money.

Related Companies:

  • Blockbuster (NYSE:BBI)
  • Wal-Mart (NYSE:WMT)
  • Amazon.com (NASDAQ:AMZN)
  • Best Buy (NYSE:BBY)
  • Time Warner (NYSE:TWX)
  • Movie Gallery (NASDAQ:MOVI)

David Gardner of Motley Fool Stock Advisor has selected Netflix three times in his investment service. The selection has crushed the market all three times. Best Buy is also a Stock Advisor recommendation.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, John Reeves owned shares in Netflix. Fool rules are here.