Netflix Shares Drop 7% After Earnings Miss And Brazilian Tax Dispute Weigh On Results

Benzinga

Netflix shares dropped 7% after missing earnings due to a Brazilian tax dispute. EPS came in at $5.87 vs. $6.97 expected, though revenue met forecasts at $11.51B. The company trimmed its margin outlook to 29% amid record ad growth.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Netflix shares fell 7% after missed third-quarter earnings estimates,

00:06setting a dispute with Brazilian tax authorities for the shortfall,

00:09and according to Benzinga, the streaming giant reported earnings per share of $5.87,

00:13missing estimates of $6.97, a revenue-matched forecast at $11.51 billion.

00:19Netflix's quarterly revenue rose 17% in line with expectations,

00:23proven by subscriber growth, price hikes, and ad revenue,

00:25with similar gains forecasts for next quarter.

00:27Netflix lowered its full-year operating margin forecast to 29%,

00:31or 30%, determining the revision of the Brazilian tax expense.

00:35Analysts questioned whether the streamer's pricing power may be nearing its peak,

00:39even as ad sales hit a record.

00:41For all things money, visit Benzinga.com.

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