10/20/2020, 10:04 PM (Source: TeleTrader)
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Netflix $1.74 EPS fails to meet Q3 estimates

Netflix Inc. released on Tuesday the company's financial results for the third quarter of the year, saying that its diluted earnings per share (EPS) achieved a growth of 18% to reach $1.74. However, it failed to meet the expectations. 2.2 million net memberships were added during this trimester, significantly less than anticipated.

Revenue annually surged 22.9% to reach $6.436 billion, surpassing the estimates, while net income climbed almost 19% to $790 million in the three months ending September 30.

"The state of the pandemic and its impact continues to make projections very uncertain, but as the world hopefully recovers in 2021, we would expect that our growth will revert back to levels similar to pre-COVID. In turn, we expect paid net adds are likely to be down year over year in the first half of 2021 as compared to the big spike in paid net adds we experienced in the first half of 2020," the report noted.

Netflix shares plunged 4.09% in the after-hours trading to sell for $503.94 per share.

Breaking the News / ND