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Netflix (NFLX) Shares Tumble After 3Q Results, 4Q Outlook

 October 23, 2012 04:19 PM
 

(By Balachander) Netflix Inc. (NASDAQ: NFLX) slumped 15.27 percent in extended trading after the online video-rental service company posted its quarterly results and issued subscriber outlook. Earnings topped market expectations, while revenue matched consensus.

The company reported earnings of 13 cents per share for the third quarter, compared with earnings of $1.16 per share in the year-ago quarter.

Revenue rose 10 percent to $905 million.

Wall Street analysts, on average, expected NFLX to earn 4 cents a share on revenue growth of 10 percent.

The company reported 25.10 million total online subscribers in the U.S. in the quarter ended September, versus a guidance range of 24.9 million to 25.7 million.

Looking ahead for the fourth quarter, NFLX sees total domestic subscriptions of 26.4 million to 27.1 million, up more than 20 percent from the year-ago levels. It forecast a "consolidated" loss because of the company's initial launch investment in the Nordics.

The stock, which has been trading between $52.81 and $133.43 over the past year, ended Tuesday's regular trading at $68.22.


Rich
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