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.
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.