Netflix Shares Decline Following Q3 Results

Shares of

dropped over 6 percent in after-hours trading after the company reported results for the third quarter. The Los Gatos, California-based company posted a quarterly profit of $29.4 million, or $0.07 per share, compared to $59.3 million, or $0.14 per share, in the year-ago period. Its revenue climbed to $1.74 billion from $1.41 billion. However, analysts were expecting earnings of $0.08 per share on revenue of $1.75 billion. The average estimate among 455 Estimize users was for earnings of $0.09 per share and revenue of $1.75 billion. Global membership climbed 3.62 million to 69.17 million in the third quarter, compared to year-ago growth of 3.02 million. Overall, Netflix added 3.62 million streaming subscribers during the recent quarter. Netflix added 0.88 million new US members in the latest quarter, versus an addition of 0.98 million in the year-ago quarter. Internationally, the company added 2.74 million subscribers. Its operating income declined to $74 million from $110 million. The company ended the quarter with $2.6 billion in cash and equivalents and short term investments. Gross debt totalled $2.4 billion at the end of the quarter. Free cash flow totaled -$252 million in the third quarter. The company expects Q4 earnings of $0.02 per share, versus analysts' estimates of $0.04 per share. Netflix shares dipped 6.07 percent to $103.54 in the after-hours trading session.