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.
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China has urged the United States to end its decades-long sanctions and embargo on Cuba after Washington imposed new restrictive measures on entities and an individual linked to the Cuban government.
India and the U.S. are close to finalising a long-awaited trade agreement, Indian Trade Minister Piyush Goyal said on Thursday after the latest round of negotiations with U.S. Trade Representative Jamieson Greer.
Hungary's ruling Tisza party has proposed a constitutional amendment that would remove President Tamás Sulyok from office, introduce term limits for MPs and overhaul key elements of the country's political system.
Mohammed Aydah, a correspondent for Saudi-owned broadcaster Al Arabiya, was killed after a bomb attached to his car exploded in eastern Yemen, the network said on Thursday.
Russia has called for clarification on whether U.S. President Donald Trump has changed his position on the war in Ukraine following remarks made at the recent G7 summit in Evian-les-Bains.
As Western Europe battles a deadly heatwave that has shattered temperature records, disrupted transport and power supplies, and forced the closure of schools and cultural landmarks, attention is turning to whether El Niño is playing a role in the extreme conditions.
Israel's defence minister said on Wednesday Israeli troops will not withdraw from southern Lebanon, highlighting a hurdle to Iran-U.S. peace talks, as the top U.S. diplomat tours the Middle East to win over allies sceptical about a proposed deal.
The U.S. Senate rejected a resolution on Wednesday that would have directed President Donald Trump to remove U.S. forces from hostilities against Iran unless Congress formally authorised military action.
U.S. President Donald Trump said that Iran had agreed to nuclear inspections into "infinity, despite Tehran's denials, and that unfrozen Iranian assets would be used to buy humanitarian supplies from the United States.
The United Kingdom recorded a provisional high of 36.4°C on Thursday, according to the Met Office, making it the hottest June day on record. The extreme heat is part of a wider heatwave affecting much of Western Europe, with temperatures remaining well above seasonal averages.
China has urged the United States to end its decades-long sanctions and embargo on Cuba after Washington imposed new restrictive measures on entities and an individual linked to the Cuban government.
India and the U.S. are close to finalising a long-awaited trade agreement, Indian Trade Minister Piyush Goyal said on Thursday after the latest round of negotiations with U.S. Trade Representative Jamieson Greer.
Hungary's ruling Tisza party has proposed a constitutional amendment that would remove President Tamás Sulyok from office, introduce term limits for MPs and overhaul key elements of the country's political system.
The U.S. Supreme Court has cleared the way for President Donald Trump's administration to end Temporary Protected Status (TPS) for hundreds of thousands of immigrants from Haiti and Syria, handing the White House another victory on immigration.
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