"Netflix missed Wall Street's third-quarter earnings targets because of an unexpected expense from a dispute with Brazilian tax authorities, while it offered a forecast a touch ahead of Wall Street projections for the rest of the year. The report failed to impress investors accustomed to fast-paced growth from the streaming video pioneer. Shares of Netflix, which had risen 39% this year ahead of the earnings report, fell 6.3%, to $1,163.80, in after-hours trading on Tuesday."
"Netflix posted net income of $2.5 billion and diluted earnings per share of $5.87 for July through September, a period when the animated K-Pop Demon Hunters became the most-watched movie in Netflix history. Analysts had expected $3 billion and $6.97, respectively, according to the London Stock Exchange Group (LSEG). Revenue was even with forecasts, at $11.5 billion. Netflix is seeking growth from new areas such as advertising and video games after attracting more than 300 million customers around the world."
Netflix missed third-quarter earnings targets because of an unexpected expense from a dispute with Brazilian tax authorities that totaled roughly $619 million. Net income for July through September was $2.5 billion, with diluted earnings per share of $5.87 versus analysts' expectations of $3 billion and $6.97. Revenue matched forecasts at $11.5 billion. Operating margin was 28% and would have exceeded company guidance of 31.5% absent the Brazilian tax expense. Shares fell about 6.3% in after-hours trading. Netflix forecast fourth-quarter revenue of $11.96 billion and diluted EPS of $5.40, marginally above Wall Street estimates. The company is pursuing growth in advertising and video games amid intensifying streaming competition.
Read at Fast Company
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