New York, January 26 (FinanceEnquiry.com) - Investors welcomed the return of nearly 600,000 subscribers to Netflix (NASDAQ: NFLX) by boosting its shares nearly 16 percent on Wednesday after the fourth-quarter results were released. By the end of December, the customer base of Netflix had risen to 24.4 million subscribers in the U.S. registering a rise of about 600,000 subscribers from the end of September after the company had lost 800,000 subscribers in the summer due to increase of its U.S. prices to the extent of 60 percent. 

The fourth-quarter results have helped Netflix recover from the bashing that its stock has been getting for several months. It is also a shot in the arm for its CEO Reed Hastings who had promised to lure back the customers. However, the after-effects of the earlier customer defections resulted in the company’s fourth-quarter earnings going down by 14 percent.

Netflix reported earnings of $40.7 million, or 73 cents per share in the fourth quarter compared to an income of $47.1 million, or 87 cents per share in the same period a year earlier. However, analysts had forecast earnings of only 54 cents per share. Revenue was up from the previous year to $876 million, an increase of 47 percent and $19 million more than what analysts had projected.

Netflix stock rose nearly 16 percent or $15.08 to $110.12 in extended trading. It is still far behind its peak of nearly $305 in July.