Netflix drops on earnings report showing weak guidance, CMO retires

Netflix fell about 1% after reporting its first-quarter earnings after the bell Tuesday. The company posted quarterly revenue that beat estimates but included light guidance for the following quarter.

Netflix provided light guidance for the second quarter. The company estimated Q2 earnings per share of 55 cents compared with the 99 cents analysts were expecting, per Refinitiv. "We don't anticipate that these new entrants will materially affect our growth because the transition from linear to on demand entertainment is so massive and because of the differing nature of our content offerings," Netflix wrote, comparing the shift from linear viewing to streaming to that from broadcast to cable in the 1980s and 1990s."We believe there is vast demand for watching great TV and movies and Netflix only satisfies a small portion of that demand.

Netflix reported net cash flow for the quarter of negative $380 million compared to negative $287 million during the same period last year. The company said it now expects its 2019 free cash flow deficit to be greater than the negative $3 billion previously expected, coming in at negative $3.5 billion. Netflix said the larger deficit was due to a change in corporate structure and investments in real estate and infrastructure.

The company announced just before its last earnings report that it would raise the price of its basic plan from $8 to $9, boost the price of its most popular HD standard plan from $11 to $13, and bump its 4K premium plan from $14 to $16. Netflix had previously raised prices three times, which seemed to have little effect on subscriber growth while boosting the stock price.

I saw this coming.

And they raised their prices again! Maybe spend less on shitty Will Smith films? JUSTATHOUGHT NETFLIX

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Netflix drops on earnings reportNetflix revealed that more than 20 million households have watched its Fyre Festival documentary in its Q1 2019 earnings report.
Source: CNBC - 🏆 12. / 72 Read more »

Netflix set to report Q1 2019 earnings after the bellNetflix will report its first quarter 2019 earnings after the bell as more media companies enter the streaming space. Walt Disney puede hacerle pupa a este pequeño....
Source: CNBC - 🏆 12. / 72 Read more »

Here's what major analysts think of Netflix before its earnings report TuesdayAnalysts watching Netflix closely as it reports earnings after the bell.
Source: CNBC - 🏆 12. / 72 Read more »

LIVE: Netflix reports Q1 earningsInvestors will be looking for solid subscriber growth when Netflix reports first-quarter earnings on Thursday, ahead of new competition from Disney.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Delta Air Lines beats on earnings and guidanceDelta Air Lines reported first-quarter earnings that topped Wall Street expectations, sending shares up 1.67%.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Goldman Sachs expects weak earnings growth across all major markets in 2019Goldman Sachs expects weak earnings growth across all major markets in 2019, Goldman Sachs' chief global equity strategist Peter Oppenheimer told CNBC's Squawk Box.
Source: CNBC - 🏆 12. / 72 Read more »

Johnson & Johnson's net earnings dropped 14% in the first-quarterJohnson & Johnson shares rose in pre-market trading on Tuesday after topping analysts' quarterly earnings expectations.
Source: BusinessInsider - 🏆 729. / 51 Read more »

From JPMorgan to Reed Hastings, here's who has the most at stake ahead of Netflix earningsNetflix is set to release its quarterly earnings after the bell on Tuesday. Markets Insider has compiled data on the stock's biggest shareholders.
Source: BusinessInsider - 🏆 729. / 51 Read more »