Netflix tones down subscriber gain forecast
After reporting poor results in the third quarter, Netflix, Inc.(NASDAQ:NFLX) has lowered its forecast for addition to the U.S. video streaming subscriber base. This led to a sharp fall in the stock after the bell on Tuesday.
The company added only 1.2 million to the total of its net streaming subscribers in the U.S. in the quarter ended September against a forecast in the range of 1 million to 1.8 million.
"In perfect hindsight, it was not the best choice to put out that high a goal," CEO Reed Hastings said in an interview. "We want high goals, we're seeking to grow very quickly and have the member satisfaction be extremely high. But five million is great progress. And we look forward to building on that."
David Wells, Chief Financial Officer, said that the London Olympics was one of the reasons for reduced new signups in August.
The stock fell $11.89 or 17.34 percent to $56.04 in pre-market trading.
Amgen up on good 3Q numbers
Amgen, Inc.(NASDAQ:AMGN) said that its profit in the third quarter has grown more than 100 percent. The results beat Street expectations. The biotech major has also raised its forecast for the year.
The net income rose to $1.11 billion from $454 million in the same period last year. The earnings per share increased from 50 cents to $1.41.
Excluding onetime expenses, the net income is $1.31 billion or $1.67 a share, up from last year’s $1.28 billion or $1.40 a share. Analysts had expected an EPS of $1.48.
The company’s revenues rose 10 percent from $3.94 billion to $4.32 billion against analyst expectations of $4.24 billion.
The company has raised its profit forecast for the year from a range of $6.20 billion to $6.35 billion to somewhere between $6.5 million and $6.6 million. Amgen has also upped its sales forecast from a range of $16.9 billion and $17.2 billion to a $17.2 billion to $17.3 billion range. Analysts expect earnings of $6.33 a share on $17.02 billion revenue.
The stock rose $2.17 or 2.50 percent to $89.9.