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Netflix shares drop after streamer misses earnings estimates, citing Brazilian tax dispute
Netflix's 17% revenue growth was offset by a $619 million one-time Brazilian tax expense, reducing operating margins by over five percentage points, the company said.
- On Tuesday, Netflix, the Los Gatos, California streaming company, reported third-quarter revenue of $11.51 billion while diluted EPS was $5.87, missing analyst forecasts and sending shares down about 6%.
- The company said the charge stems from an unexpected $619 million expense tied to Brazilian tax authorities, covering several years and cutting Q3 margin by more than five percentage points, Spencer Neumann said.
- Netflix said it had its best ad sales quarter ever and doubled U.S. upfront commitments, aided by 'KPop Demon Hunters' and Nielsen's 8.6% viewership share.
- Breaking the streak, the report showed Netflix missed the $6.96 per share forecast, but the Netflix shareholder letter said, `We don't expect this matter to have a material impact on future results`.
- Amid takeover chatter, executives said Netflix has been `more builders than buyers` but may pursue selective Warner Bros. Discovery assets while expanding live sports, games, podcasts, and prioritizing engagement over subscriber counts.
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Netflix stock drops 6% after earnings miss due to $619 million expense from Brazilian tax fight
Netflix co-CEO Ted Sarandos' company grew revenue again in the third quarter, but missed big on earnings per share due to a tax-related expense.Kevin Dietsch/Getty ImagesNetflix generated record revenue last quarter, but it incurred an approximately $619 million expense due to a tax dispute.Shares fell 6% after hours as its operating income came in below expectations.Netflix said it had its "best ad sales quarter ever," and execs fielded questio…
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Total News Sources159
Leaning Left20Leaning Right21Center61Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 20%
C 60%
R 20%
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