- Netflix (NFLX) this afternoon reported Q2 revenue below expectations but earnings per share that beat estimates. Revenue in the three months ended in June rose to $788.6 million, yielding EPS of $1.26 per share. Analysts on average had been expecting $791.5 million and $1.11 per share.
- The company ended the quarter with 24.6 million subscribers, it said, which was toward the high end of the company’s own forecast of 24 million to 24.6 million, but below some Street estimates for 24.8 million.
- For the current quarter, the company sees revenue of $780 million to $805 million, and EPS of 72 cents to $1.07 per share. Analysts have been modeling $846.5 million and $1.09.
- Netflix says it expects subscribers to rise to be in a range of 24.6 million to 25 million in the current quarter.
Netflix shares are down $22.18, or almost 8%, at $259.35 in late trading.
Obviously the price change we discussed recently caused a backlash - quicker than anticipated it appears :)
- "It is expected and unfortunate that our DVD subscribers who also use streaming don't like our price change, which can be as much as a 60% increase for them from $9.99 to $15.98, when it goes into effect for each subscriber upon their renewal date in September," Netflix said in its earnings release.
- The company acknowledged that "some subscribers will cancel Netflix or downgrade their Netflix plans, [but] we expect most to stay with us."