Netflix Q2 Earnings - Beats revenue expectations but EPS miss
The company’s third quarter forecast disappoints investors, the stock is down 10%.
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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

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

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