GO
Loading...

Netflix Revenue Rises, but Streaming Forecast Falls Short

Netflix reported its revenue rose in the third quarter, hitting analysts' target, but its streaming forecast fell short of expectations.

AP

The video-subscription service's shares ell sharply after the closing bell following the announcement. (Click here to get real-time quotes for Netflix.)

For the third quarter, the company posted earnings of $7.7 million, or 13 cents a share, down from $62 million, or $1.16 a share, in the year-earlier period.

Revenue climbed 10 percent to $905 million from $822 million in the year-earlier period.

Analysts had expected Netflix to deliver earnings excluding items of 4 cents a share on $905 million in revenue, according to Thomson Reuters.

Netflix said it ended the quarter with 25.1 million streaming subscribers, a gain of 1.2 million, which was at the lower end of its forecasted range of between 1 million and 1.8 million.

The company cut its estimate for full-year subscriber additions to between 4.7 million and 5.4 million. Previously, it predicted a gain of as many as 7 million domestic streaming subscribers by year's end.

As for fourth-quarter earnings, Netflix said it expects to fall in the range somewhere between a loss of $13 million and a profit of $2 million.

Featured

Contact Technology

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Squawk Alley