The netflix share price of streaming giant fell 4% to US $ 339 at the close of Friday trade following the release of its fourth quarter earnings report after the close of trade on Thursday. Mixed report Netflix's Q4 2018 earnings report was a mixed bag. The company reported revenue of US $ 4,187 million for the quarter, and a 27% increase over the previous corresponding period. This was around US $ 20 million short of the consensus revenue forecast with Netflix noting that adverse foreign exchange movements had hit its top line. On the bottom line, Netflix reported diluted earnings per share (EPS) of 30 cents for the …
Netflix dropped 4% to US $ 339 at the closing of Friday trade following
Netflix's Q4 201
Netflix's subscriber base continues to grow with the company adding 8.8 million paid memberships for the quarter (1.5 million in the US and 7.3 million internationally), surpassing the expectations of 7.6 million net additions
2018 was a strong year for Netflix with 35% US $ 16 billion and almost double the operating profit to US $ 1.6 billion. The impressive growth was the result of a significant subscriber growth with 29 million additions in 2018 bringing the total amount of paying members to 139 million at the end of 2018.
Friday's share price fall could be explained by the softer-than-expected guidance for Q1 2019. Netflix has forecast Q1 revenue to rise by 21% over the prior period to US $ 4,494 million and diluted EPS to increase by 37% to 56 cents. In addition, it expects to add 8.9 million subscribers in Q1 bringing the total amount of subscribers to 148 million.
Investors should not be overly concerned by Friday's reaction as the share price has risen by 35% over the last 12 months and is Google Netflix ] (Alphabet)) to report its quarterly earnings with the rest of the big tech names scheduled to announce their numbers over the next couple of weeks
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