Netflix (NFLX) missed Wall Street third-quarter earnings targets due to an unexpected expense from a dispute with Brazilian tax authorities, though it offered a slightly stronger-than-expected forecast for the rest of the year.
Shares fell 4% to $1,186.82 in after-hours trading on Tuesday.
The streaming service posted net income of $2.5 billion and diluted earnings-per-share (EPS) of $5.87 for July through September. Analysts had expected $3.0 billion in net income and $6.97 EPS. The quarter saw the animated movie “K-Pop Demon Hunters” become the most-watched film in Netflix history.
Netflix said its operating margin for Q3 was 28%, down from the 31.5% guidance, primarily due to a $619 million Brazilian tax expense. The company added that the dispute is not expected to materially impact future results.
For Q4, Netflix forecast revenue of $11.96 billion, slightly above Wall Street’s projection of $11.90 billion, and projected EPS of $5.45, a penny ahead of analysts’ expectations.
Upcoming highlights for the company include the final season of “Stranger Things” in November and December and two live NFL games on Christmas.
Netflix continues to seek growth through advertising and video games, areas that so far contribute minimally to revenue. The company has more than 300 million customers worldwide and faces stiff competition from YouTube, Amazon Prime Video, Disney+, and others.
Earlier this year, Netflix stopped reporting subscriber numbers, urging investors to focus on revenue and profitability.
“We’re finishing the year with good momentum and have an exciting Q4 slate,” Netflix said in its shareholder letter.
Colombian authorities on Wednesday (28 January) located a missing plane carrying 15 people in the northeast of the country, with no survivors found, a...
Chinese authorities say they've carried out capital punishment against a group of individuals tied to notorious telecommunications fraud syndicates op...
Storm Kristin has killed at least five people and left more than 850,000 residents of central and northern Portugal without electricity on Wednesday (...
Prime Minister Sanae Takaichi's Liberal Democratic Party is likely to increase its number of parliamentary seats and gain a majority in the lower hous...
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 29th of January, covering the latest developments you need to ...
Colombian authorities on Wednesday (28 January) located a missing plane carrying 15 people in the northeast of the country, with no survivors found, an Air Force source and local media said.
Storm Kristin has killed at least five people and left more than 850,000 residents of central and northern Portugal without electricity on Wednesday (28 January), as it toppled trees, damaged homes, and disrupted road and rail traffic before moving inland to Spain.
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 29th of January, covering the latest developments you need to know.
Life will be particularly tough for Ukrainians over the next three weeks due to plunging temperatures and a compromised energy infrastructure that has been pummeled by intense Russian attacks, depriving millions of light and heat, a senior lawmaker said on Wednesday.
The S&P 500 edged to a record closing high on Tuesday, marking its fifth consecutive day of gains, as strong advances in technology stocks offset a sharp selloff in healthcare shares and a mixed batch of corporate earnings.
Sanctions are a long-used tool designed as an alternative to military force and with the objective of changing governments’ behaviour, but they also end up hurting civilian citizens.
Residents in Syria’s Kurdish-majority city of Qamishli have stepped up volunteer patrols amid growing pressure from the country’s Islamist-led government, expressing deep mistrust of Damascus despite a fragile U.S.-backed ceasefire.
Liverpool confirmed direct qualification to the UEFA Champions League round of 16 with a 6-0 win over Qarabağ at Anfield in their final league-phase match. Despite the setback, Qarabağ secured a play-off spot, with results elsewhere going in the Azerbaijani champions’ favour on the final matchday.
Iraq's former Prime Minister Nouri Al-Maliki said on Wednesday that he rejects U.S. interference in Iraq's internal affairs, after U.S. President Donald Trump threatened to cut off support to the country if Maliki was picked as prime minister.
Colombian authorities on Wednesday (28 January) located a missing plane carrying 15 people in the northeast of the country, with no survivors found, an Air Force source and local media said.
Chinese authorities say they've carried out capital punishment against a group of individuals tied to notorious telecommunications fraud syndicates operating across the southern border, according to state news agency Xinhua.
Prime Minister Sanae Takaichi's Liberal Democratic Party is likely to increase its number of parliamentary seats and gain a majority in the lower house, a preliminary survey by the Nikkei newspaper showed on Thursday (29 January).
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 29th of January, covering the latest developments you need to know.
UK Prime Minister Keir Starmer met Chinese President Xi Jinping in Beijing on Thursday (29 January) for talks he hopes will deepen economic ties, signalling a potential breakthrough after years of strained relations.
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