NEW YORK (TheStreet) -- Netflix (NFLX) shares fell sharply in late trades on Monday after the company gave a disappointing outlook for the current quarter and said it expects spending on content to double in 2012.
The company said it sees earnings of 36 to 70 cents a share for the fourth quarter, well below the current average estimate of analysts polled by Thomson Reuters for a profit of $1.08 a share.
Netflix also said it expects to report a consolidated net loss in the first quarter of fiscal 2012, and that it's pausing on further international expansion after pushing into the United Kingdom and halting buybacks in order to maintain cash at adequate levels to "support the growth of the business."
The stock was last quoted at $85.86, down 28%, on volume of more than 6.5 million, according to Nasdaq.com. The after-hours low of $85 represents a new 52-week low for the shares and their lowest level since May 2010.Netflix said it's experienced a "wave" of cancellations since unveiling a new pricing plan in September, but that this wave "peaked a few weeks ago and cancellations are now steadily declining." The company expects to be slightly negative with additions of streaming net subscribers for the fourth quarter. Domestic streaming subscriptions are forecast between 20 million and 21.5 million for the fourth quarter with domestic DVD subscriptions projected between 10.3 million and 11.3 million, and total international subscriptions pegged between 1.6 million and 2 million. The company closed the third quarter with 21.45 million streaming subscribers and 13.93 million DVD subscribers.
Texas InstrumentsShares of Texas Instruments (TXN) ticked lower in extended action on Monday after the chip maker gave an outlook for the current quarter that includes downside to the current consensus view. The stock was last quoted at $31.25, down 1.4%, on volume of more than 700,000, according to Nasdaq.com. After the closing bell, TI said it expects earnings of 28 to 36 cents a share for its fiscal fourth quarter on revenue of $3.26 billion to $3.54 billion. The forecast includes acquisition-related costs of 15 cents a share. The average estimate of analysts polled by Thomson Reuters is for a profit of 52 cents a share in the December-ending quarter on revenue of $3.37 billion.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV