Netflix (NFLX) Shares Crushed After Q3 Results and Another Profit Warning
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Shares of Netflix (Nasdaq: NFLX) are getting destroyed after hours Monday following the second straight profit warning from the company.
Netflix topped the Street for the third quarter however, the company's fourth-quarter outlook was much worse than expected.
The company's third-quarter EPS came in at $1.16, better than the analyst estimate of $0.94. Revenue for the quarter came in at $822 million versus the consensus estimate of $810.53 million. The company lost 810,000 subscribers in the quarter.
For the fourth quarter, the company sees Q4 EPS of 36-70 cents, much worse than the $1.09 the Street is looking for. The company sees domestic streaming subscribers of 20-21.5 million and domestic DVD subscribers of 10.3-11.3 million.
CEO Reed Hasting admitted the company "greatly upset many domestic Netflix members with our significant DVD-related pricing changes, and to a lesser degree, with the proposed-and-now-canceled re-branding of our DVD service."
The company said the larger-than-expected cancellations are to blame for the fourth-quarter warning.
Shares of Netflix are down more than 20 percent to below $94 after hours.
Netflix topped the Street for the third quarter however, the company's fourth-quarter outlook was much worse than expected.
The company's third-quarter EPS came in at $1.16, better than the analyst estimate of $0.94. Revenue for the quarter came in at $822 million versus the consensus estimate of $810.53 million. The company lost 810,000 subscribers in the quarter.
For the fourth quarter, the company sees Q4 EPS of 36-70 cents, much worse than the $1.09 the Street is looking for. The company sees domestic streaming subscribers of 20-21.5 million and domestic DVD subscribers of 10.3-11.3 million.
CEO Reed Hasting admitted the company "greatly upset many domestic Netflix members with our significant DVD-related pricing changes, and to a lesser degree, with the proposed-and-now-canceled re-branding of our DVD service."
The company said the larger-than-expected cancellations are to blame for the fourth-quarter warning.
Shares of Netflix are down more than 20 percent to below $94 after hours.
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