Netflix Inc. (NASDAQ: NFLX) reported its most recent quarterly results after markets closed Wednesday. The firm said that it had $0.60 in earnings per share (EPS) and $4.92 billion in revenue, compared with consensus estimates that called for $0.56 in EPS and $4.93 billion in revenue. The second quarter from last year had $0.85 in EPS and $4.98 billion in revenue.
During the second quarter, global net subscription additions totaled 2.70 million. In the United States, Netflix lost 0.13 million memberships. Internationally, the firm added 2.83 million memberships.
Note that Netflix now has a total of 151.56 million total memberships worldwide.
Looking ahead to the third quarter, the company is calling for $1.04 in EPS on $5.25 billion in revenue. At the same time, the company is expecting to see net subscriber adds of 7.00 million. There are consensus estimates calling for $1.04 in EPS on $5.25 billion in revenue.
Reed Hastings, Chairman and CEO of Netflix, commented:
Our missed forecast was across all regions, but slightly more so in regions with price increases. We don’t believe competition was a factor since there wasn’t a material change in the competitive landscape during Q2, and competitive intensity and our penetration is varied across regions (while our over-forecast was in every region). Rather, we think Q2’s content slate drove less growth in paid net adds than we anticipated. Additionally, Q1 was so large for us (9.6m net adds), there may have been more pull-forward effect than we realized. In prior quarters with over-forecasts, we’ve found that the underlying long-term growth was not affected and staying focused on the fundamentals of our business served us well.
Shares of Netflix closed at $362.44 with a 52-week range of $231.23 to $386.80. The stock has a consensus analyst price target of $391.31. Following the announcement, the stock was down 11% at $322.52 in the after-hours trading session.