Netflix Results Fine, But Not Crazy Sexy

Reed Hastings, Netflix CEO

Quick Take: Netflx meets Q3 revenue expectations, but probably didn’t set Q4 guidance high enough for investors.

Netflix’s Q3 revenue was in-line with company guidance and street expectations while EPS beat both.  In addition, the company issued new Q409 guidance that was modestly better than previous company guidance and street expectations.  It appears investors were looking for a more bullish Q4 expectations – the NFLX shares are down about 2% in after-hours trading.

Here are the specifics:

Q3 Results:

  • Revenue $423.1 million versus street expectations of $420 million and company guidance of $416 million to $422 million.
  • EPS of $0.52 versus street expectations of $0.46 and company guidance of $0.36 to $0.44.
  • 11.1 million subscribers versus company guidance of 10.9 million to 11.1 million.

Q4 Guidance:

  • Revenue of $440 million to $446 million, up from $431 million to $445 million.
  • GAAP EPS of $0.38 to $0.47 per diluted share, up from $0.36 to $0.44 per diluted share.
  • Ending subscribers of 12 million to 12.3 million, up from 11.6 million to 12 million.


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