Netflix (NFLX) Under Pressure as Domestic Numbers Miss But International Beats
Shares of Netflix (NASDAQ: NFLX) are seeing wild action after-hours Wednesday after posting third quarter results which missed Street estimates on the top and bottom-line. Notably, domestic subs missed the company's own guidance and Wall Street consensus but international beat on both. After initially plunging 12% on the results, shares are now down 6%.
The company reported Q3 EPS of $0.07, versus the analyst estimate of $0.08. Revenue for the quarter came in at $1.74 billion versus the consensus estimate of $1.75 billion.
Total streaming subs rose 3.62 million --- 0.88 million in the U.S. and 2.74 million international, this versus guidance of 1.15 million and 2.40 million, respectively. The consensus was 1.4 million and 2.4 million, respectively.
The company said the domestic miss was in part due to the ongoing transition to chip-based credit and debit cards. "Our over-forecast in the US for Q3 was due to slightly higher-than-expected involuntary churn (inability to collect), which we believe was driven in part by the ongoing transition to chip-based credit and debit cards," the company said.
The company is looking for fourth quarter domestics net additions of 1.65 million and 3.5 million international net additions.
The company sees earnings $0.02 in the forth quarter versus the consensus of $0.04.
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