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.
U.S. President Donald Trump on Tuesday issued a rare public rebuke of Israel's military tactics in Lebanon targeting Hezbollah militants, saying it wa...
The European Commission has announced €493 million in emergency support for the Ebola response, including funding for vaccines, treatment and health...
A British Iranian man has been charged in connection with an arson attack on a memorial wall in north London, an area with a large Jewish population, ...
Iran says it is prepared for all scenarios as Tehran and Washington seek to avoid renewed tensions ahead of the planned signing of a memorandum of und...
Russia’s fuel market is coming under increasing strain as Ukrainian drone strikes disrupt output at major oil refineries, forcing Moscow to rely mor...
A British Iranian man has been charged in connection with an arson attack on a memorial wall in north London, an area with a large Jewish population, police have said.
Russia’s fuel market is coming under increasing strain as Ukrainian drone strikes disrupt output at major oil refineries, forcing Moscow to rely more heavily on imports from Belarus, according to sources reported by Reuters.
The United Nations World Food Programme (WFP) has welcomed an $800 million contribution from the U.S., saying the funding will strengthen humanitarian operations as global hunger continues to rise.
The United States military says it has carried out a strike on a vessel in the eastern Pacific, killing one person and leaving two others alive.
A senior U.S. official said on Monday that the memorandum of understanding linked to the U.S.-Iran agreement had been signed by President Donald Trump, Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf.
A strong 6.7-magnitude earthquake struck Indonesia's Sulawesi island early Tuesday, killing at least one person and injuring four, according to emergency authorities.
U.S. President Donald Trump on Tuesday issued a rare public rebuke of Israel's military tactics in Lebanon targeting Hezbollah militants, saying it was unnecessary to bomb entire apartment buildings to hunt militants.
U.S. President Donald Trump said a preliminary agreement to end the war in the Gulf has been signed by the U.S. and Iran, though details have yet to be made public and both countries said a permanent truce is yet to be negotiated.
Ukraine has said it struck an oil refinery in Russia’s Moscow region, marking one of the deepest reported attacks into Russian territory in recent months.
The European Commission has announced €493 million in emergency support for the Ebola response, including funding for vaccines, treatment and health security measures.
A British Iranian man has been charged in connection with an arson attack on a memorial wall in north London, an area with a large Jewish population, police have said.
Russia’s fuel market is coming under increasing strain as Ukrainian drone strikes disrupt output at major oil refineries, forcing Moscow to rely more heavily on imports from Belarus, according to sources reported by Reuters.
The United States military says it has carried out a strike on a vessel in the eastern Pacific, killing one person and leaving two others alive.
Armed assailants have taken a woman and her young daughter from a health centre in eastern Democratic Republic of Congo, officials said, raising fresh concerns over the spread of Ebola in the region.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment