Netflix Shares Decline After-Hours on Q2 Forecast Missing Estimates

Deep News04-17 05:20

Netflix's second-quarter earnings forecast fell short of analyst expectations, prompting a drop in its share price during after-hours trading.

The streaming pioneer also announced that co-founder Reed Hastings will step down after 29 years on the board to pursue philanthropic endeavors and personal interests.

In a statement released on Thursday, the company reported that revenue grew 16% to $12.3 billion in the first three months of the year, surpassing the expected $12.2 billion. Earnings per share came in at $1.23, compared to the forecast of $0.76.

However, Netflix projected earnings per share of 78 cents for the current quarter, below the 84 cents predicted by Wall Street analysts. Following the announcement, the company's stock declined more than 9% in extended trading.

Wall Street is now closely monitoring whether Netflix can retain its subscriber base. The company raised subscription prices in March, increasing the cost of its ad-free standard plan by $2 to $20 per month.

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