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Netflix Shares Tumble Over 9 Percent After Q3 Earnings Shortfall
(MENAFN) Netflix’s stock tumbled over 9% Wednesday following its third-quarter earnings report, which fell short of analysts’ expectations amid a costly tax conflict with Brazilian authorities.
The U.S.-based streaming giant’s shares traded near $1,121.37 at 1610 GMT, reflecting investor concerns after Tuesday’s financial disclosure.
Although Netflix posted a net income of $2.55 billion, or $5.87 per share—up from $2.36 billion, or $5.40 per share, in the same quarter last year—the results still disappointed Wall Street forecasts.
The company revealed that an unanticipated $619 million charge linked to the ongoing Brazilian tax dispute was primarily responsible for the earnings shortfall.
Netflix reported revenue growth of 17% year-over-year, reaching $11.51 billion for the quarter.
Looking ahead, Netflix expects full-year revenue of $45.1 billion, signaling a 16% increase compared to last year and aligning with earlier guidance predicting 15%-16% growth.
Due to the tax-related costs in Brazil, Netflix has revised its operating margin forecast for 2025, now projecting a 29% margin instead of the previously estimated 30%.
The U.S.-based streaming giant’s shares traded near $1,121.37 at 1610 GMT, reflecting investor concerns after Tuesday’s financial disclosure.
Although Netflix posted a net income of $2.55 billion, or $5.87 per share—up from $2.36 billion, or $5.40 per share, in the same quarter last year—the results still disappointed Wall Street forecasts.
The company revealed that an unanticipated $619 million charge linked to the ongoing Brazilian tax dispute was primarily responsible for the earnings shortfall.
Netflix reported revenue growth of 17% year-over-year, reaching $11.51 billion for the quarter.
Looking ahead, Netflix expects full-year revenue of $45.1 billion, signaling a 16% increase compared to last year and aligning with earlier guidance predicting 15%-16% growth.
Due to the tax-related costs in Brazil, Netflix has revised its operating margin forecast for 2025, now projecting a 29% margin instead of the previously estimated 30%.
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