Today's (Tuesday's) Netflix Inc. (Nasdaq: NFLX) earnings report was better than expected, but turned off investors with weak guidance for the rest of 2012.
For the second quarter Netflix reported earnings per share of 11 cents. Profit hit $6 million, a huge improvement from last quarter's $4.5 million loss. Revenue was up almost 13% to $889 million, up from $789 million in the second quarter of 2011.
Netflix earnings beat analysts' forecasts of 4 cents per share on revenue of $889 million, but fell short of last quarter's $1.26 earnings per share.
Netflix reported it added 1.1. million subscribers in the second quarter, to total more than 27 million users worldwide. They had projected adding between 200,000 to 800,000 subscribers, lower than the 1.7 million subscribers added last quarter.
But the company said it might not meet its goal of totaling 7 million U.S. subscribers in 2012. Netflix projected an additional 1 million to 1.8 million U.S. streaming subscribers in the third quarter, and unless it hits the high end, it will likely fall short of 7 million by year's end.
For its third quarter, Netflix said it expects to lose as much as 10 cents a share, or earn as much as 14 cents a share. That range would give a midpoint of a profit of 2 cents a share.
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