NEW YORK ( TheStreet) -- Netflix ( NFLX) has been the golden child of the movie sector, but the DVD-by-mail creator could face some tough reviews ahead. While the company reported yet another quarter of record subscriber growth and earnings that surpassed estimates and upped its full-year outlook, soft revenue sent shares tumbling 11.4% to $106.01 in morning trading.
Netflix also upped its full-year earnings, revenue and subscriber guidance. The company now expects to earn $2.58 to $2.86 a share, from its previous estimate of $2.41 to $2.63 a share. Management anticipates revenue in the range of $2.14 billion to $2.16 billion, up from $2.11 billion to $2.16 billion, and said it will end the year with 17.7 million to 18.5 million subscribers. The company reported second-quarter earnings of $43.5 million, or 80 cents a share, a 34% surge from a profit of $32.4 million, or 54 cents, in the year prior. This is significantly higher than analysts' estimates of 70 cents. Netflix ended the quarter with 15 million subscribers, representing a 42% gain from a year ago. Despite the strong results and indications that momentum is on its side, results were overshadowed by weak sales of $519.8 million, which were shy of Wall Street's forecast of $524 million. Netflix also noted that it has diminishing top-line visibility the further out it looks, even though it remains confident in its outlook.