UPDATE 1-Netflix third-quarter profit beats estimates

* Netflix adjusted 36 cent EPS beats Wall Street target

* Shares rise 3 percent in after-hours trade

* Netflix cuts fourth-quarter subscriber outlook (Adds stock price)

LOS ANGELES, Oct 20 (Reuters) - Online DVD rental company Netflix Inc (NFLX.O) beat Wall Street estimates with its third quarter profit, but cut its subscriber outlook for the fourth quarter citing the weakening economy.

Shares of Netflix rose about 3 percent to $24.53 a share in after-hours trade on Monday after closing at $23.80 a share.

Netflix said third-quarter net income grew to $20.4 million, or 33 cents per diluted share, from $15.6 million or 23 cents per share. Excluding items, net income totaled $22.1 million, or 36 cents, which exceeded Wall Street forecasts.

Analysts, on average, had forecast 34 cents a share on that basis, according to Reuters Estimates.

Netflix ended the quarter with 8.67 million subscribers, up 23 percent from 7.0 million at the end of the third quarter of 2007. But Netflix said it expects to end the fourth quarter with 8.85 million to 9.15 million subscribers, down from its previously reduced forecast of 8.95 million to 9.25 million.

Earlier this month, Netflix cut its fourth-quarter outlook, blaming the U.S. economic turmoil for weaker-than-expected subscriber growth in the third quarter. (Reporting by Sue Zeidler)