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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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Is Now the Time to Buy Netflix Stock?
Key PointsThe stock turned lower following the streaming-TV specialist's earnings report this week.Business momentum remains solid, with revenue growth accelerating and ads gaining traction.The price-to-earnings multiple may be too demanding.10 stocks we like better than Netflix › Netflix (NASDAQ: NFLX) stock's stellar year was threatened this week. The company reported third-quarter results, and shares slipped even though the streaming and ente…
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Coverage Details
Total News Sources168
Leaning Left25Leaning Right22Center64Last UpdatedBias Distribution58% Center
Bias Distribution
- 58% of the sources are Center
58% Center
L 22%
C 58%
R 20%
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