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Netflix earnings beat analyst expectations

A soft economy appears to be sending consumers to their couches to watch movies rented through Netflix. Company sees 21 percent jump in second-quarter revenue.

Netflix reported strong earnings after the bell on Thursday that outpaced analyst expectations, proving once again that a down economy can't slow the Web's top movie rental service.

For the company's second quarter ended June 30, Netflix saw net income of $32 million on revenue of $408.4 million, a 21 percent increase in revenue from the same quarter last year.

The Los Gatos, Calif.,-based company paid investors 54 cents per diluted share compared to 42 cents a diluted share a year ago. Analysts on average had expected the company to report 50 cents a share and $410 million in revenue.

The number of Netflix's subscribers grew to 10.6 million, a 26 percent jump year over year.

Netflix adjusted its revenue outlook for the year and said revenue would come in between $1.65 billion and $1.67 billion instead of $1.63 billion and $1.67 billion. The company projected net income would be $99 million to $109 million, up from $96 million to $106 million.

On Thursday, shares of Netflix closed at $46.46, up 2 percent. In after-hours trading, the company's stock was up slightly to $47.70.

More to come