Quantcast
Channel: Montgomery News Headlines » Stocks
Viewing all articles
Browse latest Browse all 123

Netflix shares down 26% as subscribers disappoint

$
0
0

Netflix reported earnings that were in line with Wall Street estimates, but shares plunged more than 25 percent as subscriber growth figures came in lower than expected. The company handed in third-quarter earnings of 96 cents per share on revenue of $1.41 billion. Net additions were lower than expected at 3.02 million, bringing total members to 53.06 million. The company attributed the slowdown, in part, to higher subscription costs.netflix-building

The stock dropped 26 percent in after-hours trading. Analysts had expected Netflix to report earnings of 93 cents a share on $1.41 billion in revenue, according to a consensus estimate from Thomson Reuters. The company says it expects to add another 4 million members in the fourth quarter, which would bring the total to around 57 million for the year.

The company’s closely watched total streaming contribution margin rose to 18 percent from 10.4 percent a year ago. Netflix also reported that it burned cash in the third quarter, to the tune of $74 million. Netflix recently announced a slew of new content partnerships, including an exclusive deal with comedian Adam Sandler to produce and star in four new feature films, as it looks to compete with traditional media. The online content provider operates in about 50 countries.

 


Viewing all articles
Browse latest Browse all 123

Trending Articles