In its fourth-quarter earnings results, Netflix has reported subscriber additions just above Wall Street estimates and the company’s own projections while also beating Wall Street estimates for earnings per share. However, revenue for the quarter fell right in line with recent trends, resulting in a 4% drop in share price (via CNBC News).
Expecting earnings per share of 56 cents on revenue of $4.49 billion, the streaming video giant is guiding toward lower-than-expected results for the first quarter of 2019.
The company has highlighted that it saw blockbuster hits this past quarter with original movies and scripted series like “Bird Box” and U.K.-based “Bodyguard,” and rapidly accelerated viewership in unscripted content. According to CEO Reed Hastings, Netflix branded originals accounted for the majority of viewership.
Here’s how the company did compared with Wall Street estimates:
- EPS: 30 cents, vs. 24 cents forecast by Refinitiv consensus estimates
- Revenue: $4.19 billion, vs. $4.21 billion forecast by Refinitiv consensus estimates
- Domestic subscriber additions: 1.53 million, vs. 1.51 million forecast by FactSet
- International subscriber additions: 7.31 million, vs. 6.14 million forecast by FactSet
Netflix now expects its cash burn, which totaled negative $3 billion for the year, to hold consistent in 2019. After that, however, free cash flow is expected to improve.