"The Los Gatos, California, cited an unexpected $619 million expense tied to the Brazilian tax dispute for the earnings shortfall while hailing its lineup of distinctive TV series and films for keeping its audience engaged and delivering a mix of subscriber fees and increased ad sales that helped it deliver revenue that matched analyst forecasts. Investors, though, weren't placated by the explanation as Netflix's shares still fell by about 6% in extended trading after the numbers came out."
"Analysts varied in their interpretation of the third-quarter report. Investing.com analyst Thomas Monteiro worries Netflix is using the Brazilian tax hit as a way to mask signs of a slowdown in subscriber growth and advertising amid economy uncertainty. The truth is that the company failed to deliver the kind of growth we've grown used to over the past couple of years, he said."
"Netflix earned $2.5 billion, or $5.87 per share, in its July-September quarter, an 8% increase from the same time last year. Revenue climbed 17% from last year to $11.5 billion. Analysts surveyed by FactSet Research had predicted the Los Gatos, California, company to earn $6.96 per share on revenue of $11.5 billion. Delivering solid financial growth has become more important than ever for Netflix as management has steered investors from fixating on how many subscribers its service gains from one quarter to the next."
Netflix missed analysts' earnings-per-share target in the July-September quarter, citing an unexpected $619 million expense tied to a Brazilian tax dispute. The company reported $2.5 billion net income, or $5.87 per share, and revenue of $11.5 billion, matching revenue forecasts but below the $6.96-per-share estimate. Shares fell about 6% in extended trading. Analysts split on the outlook: one warned the tax charge could mask slowing subscriber growth and advertising weakness, while another called the underlying business solid. Netflix stopped disclosing subscriber counts late last year and emphasized financial growth, with its stock up about 40%.
Read at www.mercurynews.com
Unable to calculate read time
Collection
[
|
...
]