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Netflix (NFLX) Beats Q2 Earnings, Down 16% on Lackluster Subscriber Growth

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Netflix Inc. (NFLX - Free Report) ) just released its Q2 2016 earnings results, posting earnings of $0.09 per share and revenue of $2.105 billion.   

Currently, NFLX has a Zacks Rank #3 (Hold), but it is subject to change following the release of the company’s latest earnings report. Here are 5 key statistics from this just announced report below.

NFLX:

Beat earnings estimates. The company posted earnings of $0.09 per share, beating our Zacks Consensus Estimate of $0.02.

Missed revenue estimates. The company saw revenue figures of $2.105 billion, missing our estimate of $2.11 billion. 

In Netflix’s letter to shareholders, CEO Reed Hastings stated that “Netflix membership grew by 1.7 million members in Q2, finishing with over 83 million members. However, this was below the forecast of 2.5 million net new members and prior Q2 net additions of 3.3 million. We are growing, but not as fast as we would like or have been.”

Hastings went on to say that “While un-grandfathering and associated media coverage may moderate near-term membership growth, we believe that un-grandfathering will provide us with more revenue to invest in our content to satisfy members, thus driving long-term growth.”

NFLX was down $16.11, or 16.3%, to $82.95 as of 4:33 p.m. EDT in after-hours trading shortly after its earnings report was released.

Here’s a graph that looks at NFLX’s latest earnings performance:

NETFLIX INC Price and EPS Surprise

NETFLIX INC Price and EPS Surprise | NETFLIX INC Quote

Netflix Inc. is an internet television network that engages in the internet delivery of television (TV) shows and movies on various internet-connected screens. The company operates in three segments: Domestic streaming, International streaming, and Domestic DVD.

Check back later for our full analysis on Netflix Inc.’s latest quarterly earnings report!

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