Reuters/Mike Blake
Netflix's stock got hammered in afterhours trading after reporting that it added far fewer subscribers in the second quarter than Wall Street was expecting — and warned of another subscriber shortfall to come in the third quarter.
In recent after-hours trading, Netflix's shares were down $53.87 a share, or more than 13%, to $346.61.
Here's what the company reported and how its results compared with Wall Street's average expectations and its year-ago results:
- Revenue: $3.91 billion. Analysts were expecting $3.94 billion. In second quarter last year, Netflix posted $2.79 billion in sales.
- Earnings per share: 85 cents. Analysts were looking for 79.4 cents a share. In the second quarter of 2017, it earned 15 cents a share.
- Subscriber additions: 5.1 million total — 670,000 in the US and 4.47 million internationally. Analysts were expecting 6.3 million — 1.2 million in the US and 5.1 million internationally, according to Bloomberg. In the second quarter last year, it added 5.2 million — 1.1 million US subscribers and 4.1 million international ones.
Subscriber additions forecast:
- In the third quarter, Netflix expects to add 5 million subscribers — 650,000 in the US and 4.35 million internationally. According to Bloomberg, analysts were projecting the company would add 5.93 million in the period — 875,000 domestically and 5.05 million internationally.
The company's stock closed regular trading up $4.68 a share, or 1%, to $400.48 and was up nearly 150% over the last year.
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