Netflix Q2 Earnings - Beats revenue expectations but EPS miss
The company’s third quarter forecast disappoints investors, the stock is down 10%.
Staff or Guest writer for The Dog of Wall Street.
2020-07-16 16:10

Netflix added 10 million net new global subscribers in Q2, beating expectations. Netflix missed analyst expectations on earnings per share but beat revenue. Here the highlights:

  • Earnings per share (EPS): $1.59 vs. $1.81 expected
  • Revenue: $6.15 billion vs. $6.08 billion
  • Global paid net subscriber additions: 10.09 million vs. 8.26 million expected

Netflix stated:

“In Q1 and Q2, we saw significant pull-forward of our underlying adoption leading to huge growth in the first half of this year (26 million paid net adds vs. prior year of 12 million). As a result, we expect less growth for the second half of 2020 compared to the prior year.”

The company expects 2.5 million net subscribers for Q3, while analysts were expecting 5.27 million. Netflix also announced during the call that Chief Content Officer Ted Sarandos will become co-CEO and join the Board of Directors. Investors are not happy with the projections for Q3, stock is down more than 10%.


Disclaimer: Writer has no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-07-16 16:10

About the Author
Staff or Guest writer for The Dog of Wall Street.

Better Investment: Disney or Netflix
Let’s take a closer look at two of the more successful companies on the markets today.
By Mike Sakuraba | 1 week ago

2 FinTwit Stocks I'm Bearish On
If you have ready my past articles, you know I generally like to write about companies I am bullish on.
By Mike Sakuraba | 2 months ago

Netflix is Still the Streaming King
Early on in the COVID-19 pandemic, Netflix (NASDAQ:NFLX) was heralded as one of the big winners of the new stay at home economy.
By Mike Sakuraba | 3 months ago

Netflix Stock: Key Takeaways from Q4 Earnings
Netflix's revenue for the year 2020 reached $25, an increase of 24% from 2019.
By Shahid | 8 months ago

2 Stocks to Buy Before Their Earnings Calls
We are fast approaching the end of January which means one thing in the investing world: the first earnings season of the year.
By Mike Sakuraba | 8 months ago

Why Netflix is Surging
Netflix has continued to dominate the streaming industry.
By Mike Sakuraba | 1 year ago