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Earnings Miss, Revenues Beat
Shares in US streaming giant Netflix are trading over 5% lower pre-market on Wednesday following a weak set of Q3 earnings yesterday.
Netflix reported third-quarter earnings per share of $1.74, undershooting expectations of a $2.13 EPS. Despite the miss, earnings were still higher than the $1.47 recorded over the same period a year prior.
Indeed, revenues actually came in above expectations at $6.44 billion, versus $6.38 billion expected. This marks a 22.7% increase on the same period a year prior.
With the rise in revenues, Netflix noted that its free cash flow was positive for a third straight quarter at $1.1 billion. This was firmly above the -$551 million in Q3 2019.
However, this was mostly due to the fact that the company has had to largely halt production over the quarter.
Loss in New Subscribers
While the headline readings were not dismal, the big hit to investor sentiment has come from news that the company only added 2.2 million subscribers in Q3....
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