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Netflix Earnings Miss; Revenue, Subs Beat Estimates

Netflix shares were volatile after the company missed analysts earnings estimates.
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Shares of media streaming company Netflix  (NFLX) - Get Report were volatile after the company missed on earnings expectations despite reporting global net subscriptions ahead of estimates. 

Netflix reported earnings of $2.97 per share on revenue of $7.34 billion. Analysts were expecting the company to report earnings of $3.18 per share on revenue of $7.32 billion. 

"In Q2’21, our engagement per member household was, as expected, down vs. those unprecedented levels but was still up 17% compared with a more comparable Q2’19," the company said in a statement. 

The company finished the quarter with 209 million paid memberships, ahead of the 208.7 million paid subscribers analysts polled by FactSet were expecting for the period. 

Netflix shares rose $2.94, or 0.5%, to $533.99 in after-hours trading Tuesday. The stock had fallen as much as 1.5% immediately after the report was released following the close of trading. 

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Netflix said it added 1.5 million paid memberships, also ahead of estimates of 1.1 million adds. 

For the third quarter, the company expects to add 3.5 million new paid subscribers after adding 2.2 million in the same period a year ago.  

Netflix also said that its operating profit has reached $2 billion per quarter so far in 2021. 

Earlier this month, the company's shares got a boost after the company announced that former Facebook FB executive Mike Verdu has been hired to head the company's drive into streaming video games. 

UBS analyst Eric Sheridan, meanwhile, recently added $20 to his Netflix price target, taking it to $620 per share.