Netflix disappoints on EPS downgrade

Netflix has broadly missed estimates, resulting in a fall in the company’s share price in extended trading.

Despite exceeding EPS estimates (30c v 24c), the market was disappointed with the company’s downgrade of its earnings guidance, which was dropped to 56c per share, below the estimated 94c.

Q4 revenue also missed expectations, coming-in at $4.19b against a $4.21b consensus forecast.

The all-important paid streaming net change numbers delivered mixed results. The Q4 numbers missed expectations, despite posting a record figure. However, the company expects an increase of 8.90 million subscribers in Q1, beating analyst estimates of 8.50 million.

Netflix’s share price tumbled by as much as 5.61% in after-hours trade, before recovering to contain losses to around 3.00 per cent.

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