High probability Netflix will beat domestic numbers: Stock expert
Wedbush managing director of equity research Michael Pachter and Kearney global consumer industries head Greg Portell anticipate the streaming giant’s earnings.
Netflix was able to beat revenue estimates by a hair even as it failed to meet analysts' expectations on earnings and new subscribers, the company said in its second-quarter earnings report Tuesday.
The company's stock dipped 1% in after-hours trading following the announcement that came at the closing bell.
Netflix's earnings per share for Q2 were $2.97, falling short of the $3.16 expected by analysts. The firm added 1.54 million subscribers globally over the quarter, beating their own aim of 1.12 million but missing the 1.75 million expected by analysts. Total paid subscriptions hit 209.18 million.
The company's revenue was $7.34 billion, a 19% year-over-year increase that barely beat the $7.32 billion expected.
"COVID has created some lumpiness in our membership growth (higher growth in 2020, slower growth this year), which is working its way through," Netflix explained in a letter to shareholders. "We continue to focus on improving our service for our members and bringing them the best stories from around the world."