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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The U.S. military announced that it has completed a new wave of strikes against Iranian military targets under U.S. President Donald Trump's orders. T...
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Ukraine and Russia exchanged fresh attacks on Tuesday, with Kyiv targeting shipping and energy infrastructure inside Russia while Moscow launched another large-scale missile and drone assault on Ukrainian cities.
The U.S. military announced that it has completed a new wave of strikes against Iranian military targets under U.S. President Donald Trump's orders. The operation targeted command centres, air defence systems, missile and drone facilities, and coastal surveillance sites across multiple locations.
Two British hackers who carried out a cyberattack on Transport for London (TfL) that cost the transport authority £29 million to remediate have been jailed for a total of 11 years.
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A woman whose husband was sucked out of the window of a plane during a Ryanair flight has recounted pulling her husband to safety. Serbian couple Svetlana Maksimovic and Ljubisa Karovic had just settled into a flight with the airline last week, when a loud bang pierced the hum of engines.
Russia launched a fresh wave of missile strikes on Ukraine early on Thursday, saying it had hit military and industrial facilities in Kyiv, as well as key port infrastructure in the southern Odesa region.
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