5 Earnings Reports Everyone is Talking About

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1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 113

Netflix, Inc. (NASDAQ:NFLX) recently announced better-than-expected financial results for the third quarter. However, the video-streaming giant warned that higher programming costs will hurt its operating margin in the fourth quarter.

The warning apparently sent Netflix, Inc. (NASDAQ:NFLX) shares down more than two percent in the pre-market trading session on Wednesday, 20 October, 2021.

For the third quarter, Netflix, Inc. (NASDAQ:NFLX) reported earnings of $3.19 per share, well above $1.74 per share in the same period last year. Revenue for the quarter came in at $7.48 billion, higher than $6.44 billion in the year-ago quarter. Analysts were expecting Netflix, Inc. (NASDAQ:NFLX) to report earnings of $2.57 per share on revenue of $7.48 billion.

In addition, Netflix, Inc. (NASDAQ:NFLX) announced that it added 4.4 million new subscribers in the quarter, crushing the consensus forecast of 3.78 million. Looking forward, the company expects to add 8.5 million new subscribers in the current quarter, just above analysts’ average estimate of 8.4 million.

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On the downside, Netflix, Inc. (NASDAQ:NFLX) said that production of new content will weigh on its profitability in the fourth quarter. The company expects operating margin of about 6.5 percent in the current quarter, compared to 14 percent in the fourth quarter of 2020.

You can also take a peek at Top 10 SPACs to Buy According to Richard Gerson’s Falcon Edge Capital and 10 Best Oil Stocks To Buy According To Hedge Funds.

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