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Last Update: 25-Oct-11 09:19 ET
Netflix Guides Fourth Quarter Below Consensus
Netflix (NFLX $118.84) reported third quarter earnings of $1.16 per share, $0.22 better than the Capital IQ Consensus Estimate of $0.94.
Revenues rose 48.6% year/year to $822 million versus the $812.9 million consensus.
NFLX reported third quarter net subscribers of 23.79 million versus approx 24 million guidance. Total U.S. Subscribers is 23.79 million up 42% year/year. Net Sub additions fell -0.81 million.
For its fourth quarter, the company expects to see earnings of $0.36 to $0.70/share, well below its $1.09 Capital IQ Consensus Estimate. On the top line, the company sees revenue falling in the range of $841 million to $875 million versus $923.19 million Capital IQ Consensus Estimate.
Says DVD subs in fourth quarter will decline sharply which is reflected in guidance due to price change. Weekly rate of DVD cancellations is shrinking; expect future cancellation rates to shrink more modestly. Says that streaming net additions will be negative in october due to the cancellation wave. Expect levels to be flat in November. Overall expect slightly negative streaming net sub additions in fourth quarter. Expects to double spending on content in 2012 from 2011.
Revenues rose 48.6% year/year to $822 million versus the $812.9 million consensus.
NFLX reported third quarter net subscribers of 23.79 million versus approx 24 million guidance. Total U.S. Subscribers is 23.79 million up 42% year/year. Net Sub additions fell -0.81 million.
For its fourth quarter, the company expects to see earnings of $0.36 to $0.70/share, well below its $1.09 Capital IQ Consensus Estimate. On the top line, the company sees revenue falling in the range of $841 million to $875 million versus $923.19 million Capital IQ Consensus Estimate.
Says DVD subs in fourth quarter will decline sharply which is reflected in guidance due to price change. Weekly rate of DVD cancellations is shrinking; expect future cancellation rates to shrink more modestly. Says that streaming net additions will be negative in october due to the cancellation wave. Expect levels to be flat in November. Overall expect slightly negative streaming net sub additions in fourth quarter. Expects to double spending on content in 2012 from 2011.
