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Jul 16, 2018

Netflix Q2 2018 earnings I CNBC News

According to CNBC: Netflix falls more than 9%

cnbc.com

Netflix Q2 2018 earnings

Michelle Castillo


Netflix CEO Reed Hastings Ethan Miller | Getty Images
Netflix CEO Reed Hastings
Netflix missed its subscriber addition projections for the first time in five quarters, leading shares to tumble more than 13 percent.
The company reported second-quarter earnings after the market closed on Monday. Despite beating estimates on revenue, Netflix posted a huge miss on subscriber additions. The company only added 5.15 million subscribers, about one million less than forecast. Domestic additions were only a little more than half than projected, while it just added 4.5 million subscribers internationally.
Netflix reported:
  • Revenue: $3.91 billion vs. $3.94 billion estimated, according to a Thomson Reuters consensus estimate.
  • Domestic subscriber additions: 670,000 vs. 1.23 million subscribers estimated, per FactSet and Street Account
  • International subscriber additions: 4.5 million subscribers vs. 5.11 million subscribers estimated, per FactSet and Street Account
  • Earnings per share (EPS): 85 cents (including $85 million in non-cash unrealized gain)
Some analysts were worried the company could not sustain its share price growth, which is over 100 percent year-to-date. They also raised concerns as competitors like Amazon ramp up their streaming efforts, while others like Disney and AT&T are prepared to invest in more digital content. Netflix is expected to spend up to $8 billion this year on 700 original series.
Netflix also issued a weaker guidance for the third quarter than expected, saying it is expecting to add 5 million subscribers total compared to an analyst estimate of more than 6 million. It is projecting 650,000 new subscribers in the U.S. and 4.35 million internationally.
This is breaking news. Please check back for updates.