Netflix Shares Fall After Q3 Report Shows Lighter Than Expected Sub Growth

The stock price is down more than 16% in after-hours trading following the earnings release. The statistic that jumped out was Netflix‘s disclosure that it added 1.16M domestic streaming customers in the quarter — which is below the 1.56M that analysts expected. That means Netflix will fall short of its prediction to add 7M this year; it lowered its forecast to a maximum of +5.25M paid subs. The Q3 report shows net income of $7.7M, -87.7% vs the period last year, on revenues of $905.1M, +10.1%. The revenue figure came in slightly ahead of the $904.9M that analysts projected. Earnings per share, at 13 cents, were way ahead of the 4 cent consensus forecast. Still, the lighter-than-expected domestic streaming sub growth number left Netflix with 25.1M total subscriptions, below expectations for 25.3M, and revenues in the business of $556M, behind analysts’ prediction of $557.6M. (more…)

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