Netflix Inc. attracted a record number of paying subscribers in the first quarter of 2019, but may have accelerated profit growth that could have been spread...
Netflix Inc. attracted a record number of paying subscribers in the first quarter of 2019, but may have accelerated profit growth that could have been spread throughout the year, and shares declined more than 3% in after-hours trading Tuesday.
Netflix NFLX, +3.04% reported the addition of 9.6 million new paying subscribers in the first three months of the year, a record for a single quarter. The streaming-entertainment company reported earnings of $344 million, or 76 cents a share, up from 64 cents a share a year ago. Revenue for the quarter was $4.5 billion, up from $3.7 billion in the same period last year.
Analysts on average expected Netflix to report earnings of 58 cents a share on sales of $4.5 billion, according to FactSet. Analysts projected 8.06 million new paying subscribers, after Netflix said it expected to add 8.9 million paying subscribers. Investors focus much more on Netflix’s subscriber count than its financial performance, because it is more predictive of where Netflix’s finances are going, and is especially important amid new competition from the likes of Apple Inc. AAPL, +0.
“Operating margin of 10.2% exceeded our beginning-of-quarter expectation as some spending was shifted from Q1 to later in the year,” Netflix explained in a letter to investors. Netflix shares closed 3% higher Tuesday, at $359.46, but declined to less than $350 in immediate late trades after the numbers were released. The stock has increased 17.2% in the past year, as the S&P 500 index SPX, +0.05% has gained 8.5%.Jeremy C. Owens Jeremy Owens is MarketWatch’s technology editor and San Francisco bureau chief. You can follow him on Twitter @jowens510.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Netflix in talks to buy Hollywood's historic Egyptian Theatre: sourceNetflix Inc is in discussions to buy the Egyptian Theatre, a historic movie hous...
Read more »
Fried chicken vs $13: Apple, Qualcomm explain claims to jury as trial opensApple Inc and Qualcomm Inc on Tuesday opened a complex trial with the iPhone mak...
Read more »
Netflix's CEO Reed Hastings to leave Facebook's boardReed Hastings, chairman and chief executive of Netflix Inc. , will be leaving Facebook Inc.'s board along with Erskine Bowles, president emeritus of...
Read more »
The National Enquirer and other tabloids owned by American Media Inc. are on the chopping blockA Washington Post report claims that the National Enquirer's recent legal troubles and controversial reporting tactics may have had an influence.
Read more »
Apple and Qualcomm settle their war over patented tech used in iPhonesApple Inc. and Qualcomm Inc. have ended their worldwide, multibillion-dollar dispute over a technology used in iPhones, the two tech titans announced Tuesday.
Read more »
American Media looking to sell tabloid National EnquirerAmerican Media Inc on Wednesday said it is looking at strategic options for its ...
Read more »
Amazon, Microsoft chosen to compete for Pentagon cloud computing contractAmazon.com Inc and Microsoft Corp have been selected to continue competing for P...
Read more »
Facebook, Google accused of anti-conservative bias at U.S. Senate hearingRepublican senators on Wednesday said Alphabet Inc's Google, Facebook Inc a...
Read more »
Amazon buys warehouse robotics startup Canvas TechnologyAmazon.com Inc on Wednesday said it had acquired Canvas Technology, a robotics s...
Read more »
National Enquirer is put up for saleThe National Enquirer is up for sale. American Media Inc. is looking for a buyer for the scandal-hungry tabloid, which has been beset by scandals of its own making in the past year.
Read more »