Investors are selling shares of Netflix (Nasdaq: NFLX) following better-than-expected second-quarter results but third-quarter guidance which looked somewhat conservative. In Tuesday's after-hours session, the stock is down about 14 percent to $69.15.

Netflix posted quarterly revenue of $889.16 million, up nearly 13 percent from sales of $788.61 million in the same quarter of 2011. Sales were up 2 percent from the first quarter of this year. Analysts were expecting sales of $888.96 million.

Net income was down more than 90 percent from a profit of $68.21 million in the year-ago quarter to $6.16 million. Netflix reported a loss of $4.58 million last quarter. Earnings per share totaled 11 cents, nearly 92 percent lower compared to a EPS of $1.26 a year ago. The Street was looking for EPS of just 5 cents.

The company saw net subscriber additions of 530,000 in the US and net additions of 560,000 in its International segment. Total streaming subscribers were 23.94 million in the US and 3.62 million internationally. Contribution margin was 15.6 percent within the US.

Netflix is looking for third-quarter sales of $890-$911 million, near the low end of the Street's $905.9 million consensus estimate.

Earnings