Netflix & Intel: Twin Home Runs On Q2 Earnings

Both Netflix (NFLX - Analyst Report) and Intel (INTC - Analyst Report) posted impressive Q2 earnings statements after the bell Wednesday, demonstrating strength in both 20th century and 21st century tech firms. Netflix posted earnings of 6 cents per share (after the 7-1 stock split) on sales of $1.64 billion in the quarter (a tad under the Zacks consensus estimate), whereas Intel beat solidly on the top and bottom lines with $13.2 billion in revenues and 55 cents per share, respectively. Both companies are flying high in after-hours trading, as well.

Intel's 10 percent positive surprise for the quarter is notable, especially amid reports of falling PC shipments and Microsoft issuing Windows 10 upgrades for free (lessening the need for consumers to purchase new PCs). In fact, Intel's PC business performed better than expected with $7.5 billion in sales topping the $7.4 billion expected.

While Netflix is currently trading at all-time highs, its Q2 numbers -- particularly its guidance -- continue to stoke investors. Streaming net additions in the U.S. and internationally keep coming in better than expected, and guidance continues to rise as well. A total of 3.28 million new net adds in the quarter include 2.37 million from overseas markets, with rollouts continuing throughout Europe and "exploring options" in China. The company cites its original programming such as "Daredevil" for capturing -- and keeping -- its subscribers numbers high.

Intel, while a Zacks Rank #3 (Hold), had been getting clubbed hard throughout the quarter, especially following its announced acquisition of Altera (ALTR - Analyst Report) this past spring, which caused a slew of negative estimate revisions. This then raised Value prospects for Intel, of course, with INTC shares down over 18 percent year to date before the 8 percent jump in initial after-market trading (this jump has cooled off to the 5.25 percent range since). Intel had managed to keep its Zacks Rank #3 status intact largely by posting consistent positive earnings surprises, keeping competitive even as the aging chip market sees its share of headwinds.

Netflix, for its part, has done an admiral job surpassing earnings expectations itself, averaging an average 21.2 percent beat over the previous 4 quarters prior to the 25 percent beat after the bell today. The 7-for-1 stock split will now put the company's valuation in more of a palatable range than its previous 240 times forward earnings, but with shares up another 10 percent after hours, we're not currently seeing a downward shift in sentiment anytime soon for this Zacks Rank #3 (Hold) company.