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"Lacks Excitement": Netflix Tumbles 9% as Weak Earnings Forecast Deepens Doubts over Growth
Netflix said higher pricing, member growth and advertising lifted revenue 13%, but third-quarter profit guidance came in below analyst estimates.
- Netflix posted record second-quarter revenue of $12.56bn, up 13%, with earnings of $0.80 a share beating analyst estimates; however, shares fell 9% in after-hours trading.
- The market reaction stemmed from Netflix's third-quarter guidance of $12.86bn in revenue, representing roughly 12% growth but falling short of the $13 billion Wall Street had modeled.
- Narrowing full-year guidance to between $51 billion and $51.4 billion, Netflix acknowledged that a 12% forward pace would represent the slowest quarterly growth in approximately three years.
- To sustain growth, the company intends to maintain its three-tiered content strategy while expecting advertising to generate about $3 billion this year, leveraging technology for more personalized experiences.
- Operating margin declined slightly as free cash flow slipped to about $1.5bn from $2.3bn due to resumed content spending, though Netflix repurchased a record $4.7bn in shares this quarter.
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36 Articles
36 Articles
Netflix (NFLX) fell 9% after mixed Q2 results and weaker guidance.
·Ra'anana, Israel
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Netflix misses earnings targets as growth enters a steadier phase
Netflix forecast third-quarter revenue and earnings on Thursday that fell short of Wall Street targets and said it would cut the frequency of viewing-hours reports as the company seeks new avenues of growth. Shares of Netflix fell nearly 8.6 per cent in after-hours trading to $67.99. The company led by…
·Nicosia, Cyprus
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Netflix Sinks 11% on Soft Q3 Guidance as Analysts Warn It's "Losing Narrative Control"
Analysts say Netflix is losing control of its own story, and a single line buried in Friday's earnings report about future disclosures is making Wall Street more nervous than the guidance miss itself.
·Lakewood, United States
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Coverage Details
Total News Sources36
Leaning Left3Leaning Right10Center6Last UpdatedBias Distribution53% Right
Bias Distribution
- 53% of the sources lean Right
53% Right
L 16%
C 31%
R 53%
Factuality
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