Netflix Inc. Earnings: Swing to a Loss After Two Straight Profit Quarters

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S&P 500 (NYSE:SPY) component Netflix Inc. (NASDAQ:NFLX) dropped to a first quarter loss, but results topped expectations. Netflix provides subscription service, streaming movies, and TV episodes over the Internet.

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Netflix Earnings Cheat Sheet for the First Quarter

Results: Reported a loss of $4.6 million (8 cents per diluted share) in the quarter. The internet commerce had net income of $60.2 million or $1.11 per share in the year-earlier quarter.

Revenue: Rose 21% to $870 million from $719 million.

Actual vs. Wall St. Expectations: Netflix Inc. beat the mean analyst estimate of a loss of 28 cents per share. It fell short of the average revenue estimate of $869.3 million.

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 18 cents in the fourth quarter of the last fiscal year, by 21 cents in the third quarter of the last fiscal year, and by 15 cents in the second quarter of the last fiscal year.

NFLX’s loss in the latest quarter breaks a three-quarter string of profits. The company reported a profit of $35.2 million in the fourth quarter of the last fiscal year, a profit of $62.5 million in the third quarter of the last fiscal year and $68.2 million in the second of the last fiscal year.

Looking Forward: For the next quarter, analysts are increasingly pessimistic about the company’s performance. The average estimates for the second quarter is at a loss of 18 cents per share, down from 7 cents ninety days ago. For the fiscal year, the average estimate has moved down from a profit of 28 cents a share to a loss of 32 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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