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Netflix Shares Plunge After Disappointing Q3 Profits
(MENAFN) Shares of Netflix fell by over 9% on Wednesday following third-quarter earnings that fell short of expectations due to a conflict with Brazilian tax authorities.
The stock of the US-based streaming platform was trading near $1,121.37 as of 1610 GMT. This drop came shortly after the company released its financial results late on Tuesday.
Netflix reported a third-quarter net profit of $2.55 billion, or $5.87 per share, which increased from $2.36 billion, or $5.40 per share, in the same period last year. However, this figure was below what analysts had forecasted.
The company explained that the earnings shortfall was primarily due to an unforeseen charge of $619 million stemming from the ongoing tax dispute in Brazil.
Revenue for Netflix grew 17% compared to the previous year, reaching $11.51 billion during the quarter.
Looking ahead, the firm expects full-year revenue of $45.1 billion, marking a 16% rise over the prior year and aligning with projections of 15% to 16% growth in revenue.
Due to the Brazilian tax complication, Netflix has adjusted its forecast for the annual operating margin, now predicting it to be 29%, down from the earlier estimate of 30%.
The stock of the US-based streaming platform was trading near $1,121.37 as of 1610 GMT. This drop came shortly after the company released its financial results late on Tuesday.
Netflix reported a third-quarter net profit of $2.55 billion, or $5.87 per share, which increased from $2.36 billion, or $5.40 per share, in the same period last year. However, this figure was below what analysts had forecasted.
The company explained that the earnings shortfall was primarily due to an unforeseen charge of $619 million stemming from the ongoing tax dispute in Brazil.
Revenue for Netflix grew 17% compared to the previous year, reaching $11.51 billion during the quarter.
Looking ahead, the firm expects full-year revenue of $45.1 billion, marking a 16% rise over the prior year and aligning with projections of 15% to 16% growth in revenue.
Due to the Brazilian tax complication, Netflix has adjusted its forecast for the annual operating margin, now predicting it to be 29%, down from the earlier estimate of 30%.
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