Shares of Netflix (NFLX) were cratering after the streaming giant missed subscriber addition expectations and beat on earnings expectations.
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The stock was falling 10.4% to $324.65 a share in after-market trading Wednesday after having fallen 0.97% in regular hours.
GAAP earnings per share came in at 60 cents, beating Wall Street's estimates of 56 cents. Revenue was $4.923 billion, missing analysts expectations of $4.93 billion. Netflix added a net 2.7 million of total subscribers, missing expectations of 5 million. International subs increased by 2.83 million, coming in below estimates of 4.954 million. U.S. subs fell by 0.13 million, missing estimates of an add of 372,000. Netflix burned $594 million of cash in the quarter, less than the expected $966 million.
Although the subscriber numbers were disappointing, "In Q3, we expect to grow by 7 million paid memberships, more than the 6.1 million in Q3 a year ago," the company wrote in a press release. "Consumers around the world continue to move from linear television to internet entertainment at a remarkable rate."
Netflix is guiding for third quarter revenue of $5.25 billion, above analysts expectations of $5.23 billion. The company is expecting GAAP EPS in the quarter of $1.04, slightly above Wall Street's expectations of $1.03.
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