Netflix earnings to highlight password crackdown, actors’ strike impact

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Netflix is likely to post solid third quarter profits Wednesday, with investors focused on the impact of the Hollywood actors' strike and reported plans for near-term price increases.

shares moved lower in pre-market trading with investors looking keenly ahead to the streaming media group's third quarter earnings slated for after the closing bell.

Netflix, which no longer provides specific guidance on new subscriber additions, forecast third quarter earnings in the region of $3.52 per share and revenues of $8.52 billion in late June. "Our sense is that many investors are viewing near-term trends as incrementally unfavorable, reflecting an original content air pocket forming around strikes, FX headwinds, recent margin commentary at conferences, and an ad business that is taking longer to ramp than investors perceived," said KeyBanc Capital Markets analyst Justin Patterson.

 

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