Published: Tue, July 17, 2018
Entertaiment | By Minnie Bishop

Netflix shares dive after disappointing quarterly results

Netflix shares dive after disappointing quarterly results

Worldwide subscriber growth also fell far short, as Netflix added 4.47 million against an expected 4.97 million.

Shares of Netflix, which have more than doubled since the start of the year, dropped by around 14 percent in after-hours trading.

The company also slightly missed revenue targets, bringing in $3.91 billion compared to Wall Street Expectations of $3.94 billion. In the second quarter a year ago, Netflix posted $2.79 billion in sales. Wall Street consensus Q2 2018 estimates were for $3.94 billion in revenue and EPS of 79 cents. In the second quarter of 2017, it earned 15 cents a share.

Subscriber additions: 5.2 million total - 1.1 million in the U.S. and 4.1 million internationally.

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The streaming company said it had added 5.2 million subscribers in the three months to June 30, below analyst forecasts for 6.3 million subscribers and its own expectations. According to Bloomberg, analysts were projecting the company would add 5.93 million in the period - 875,000 domestically and 5.05 million internationally. If the stock plunges on the same trajectory during Tuesday's regular trading session, it will be the steepest drop in almost four years.

Netflix is still expecting a big second half of 2018 with many new hit shows still to come and several big deals.

As a reminder, the quarterly guidance we provide is our actual internal forecast at the time we report and we strive for accuracy, meaning in some quarters we will be high and other quarters low relative to our guidance.

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