Business
Netflix has missed the growth forecast with new subscribers, the stock is plummeting
In the third quarter, 2.2 million new subscribers were added to the company, compared to expectations of 3.57 million.
Netflix also missed earnings per share, but beat its earnings forecast.
The stock loses about 5% in late trading
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Netflix
Globes service
Tuesday, October 20, 2020, 11:10 PM
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Despite series like "Emily in Paris," Netflix has not even managed to get close to expectations
Netflix failed to meet the forecast for new subscribers in the third quarter of this year.
While the expectation was 3.57 million new subscribers in the quarter, the company added only 2.2 million subscribers compared to the second quarter of the year.
The stock loses about 5% in late trading.
Netflix also missed its earnings per share forecast but managed to surpass its earnings forecast.
Thus, the company's revenue was $ 6.44 billion compared to an expectation of $ 6.38 billion - a jump of 23.3% compared to the corresponding quarter.
Earnings per share totaled $ 1.74 compared to expectations of $ 2.14 per share.
Net income for the quarter was $ 790 million, an increase of 18.8% over the same quarter last year.
At the end of the third quarter, Netflix had 195.15 million paying subscribers.
This is an increase of 36.8 million new subscribers compared to the corresponding quarter in 2019, in which 6.77 million subscribers were added to the company.
In the second quarter of the year, 8.26 million subscribers were added to the company.
Netflix estimates that in the fourth quarter the number of subscribers will increase to 201.75 million, which is an increase of 6 million subscribers in the quarter.
Netflix expects revenue in the fourth quarter of this year to stand at $ 6.57 billion (a jump of 20 from the same quarter last year) and net income to total $ 615 million (up 5%).
Netflix estimates earnings per share will be $ 1.35, compared to $ 1.3 in the same quarter last year.
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