Netflix Takes Hit After Earnings

by InvestorPlace Staff | July 24, 2012 4:43 pm

Netflix (NASDAQ:NFLX[1]) shares plunged nearly 14% in after-hours trading despite posting second quarter earnings that beat analyst expectations.

Wall Street was looking for an EPS of 5 cents, while the company more than doubled that estimate with an EPS of 11 cents. Netflix posted $1.26 per share a year ago.

Revenue was $889 million — around a 13% increase from a year ago and approximately what analysts had been expecting.

For the current quarter, the company gave a wide EPS range from a loss of 10 cents to a gain of 14 cents, while analysts expect an EPS of12 cents.

Shares of the company have taken a clubbing in the past year, losing a horrendous 70% of their worth. The company also says the Olympics will hurt viewership.

-Alyssa Oursler, InvestorPlace Editorial Assistant

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