Netflix Plunges on Lower Guidance
Shares of Netflix (NASDAQ: NFLX) tumbled in Tuesday's after-hours session after the provider of streaming entertainment and DVD-by-mail services offered up weak third-quarter guidance. Netflix said its third-quarter EPS results could range anywhere from a loss of 10 cents to a profit of 14 cents on revenue of $890 million $910 million. Analysts are expecting a profit of 11 cents per share on revenue of $907.5 million.
In the second-quarter, California-based Netflix earned 11 cents a share on revenue of $889 million. Analysts expected a profit of five cents per share on revenue of $889 million. Netflix reported subscriber numbers of 23.9 million for domestic streaming services, 9.2 million for DVD services and international subscribers of 3.6 million.
Investors were expecting subscriber numbers of 24.3 million domestic streaming subscribers, 9.1 million DVD subscribers, and an international number of 3.7 million.
Shares of Netflix were down almost 14 percent after reporting earnings. The stock is up 11.3 percent year-to-date.
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