Netflix Dips on Q2 Revenue Miss

Netflix Inc. (Nasdaq: NFLX) posted a 55 percent surge in profits in the second quarter due to a healthy jump in subscriber sign ups and the growing popularity of its streaming-only plan, but its stock took a hit when revenues missed analyst expectations.

Netflix added almost 2 million subscribers in the quarter, extending its total to 25.56 million.

The streaming video and DVD rental giant posted net income of $68 million, or 1.26 cents per share, on revenues of $789 million. That's up from the net income of $44 million, or $0.80 per share, it reported in the year-ago quarter.

Netflix was expected to report a profit of $1.11 per share on revenue of $791.6 billion for the second quarter, according to Thomson Reuters estimates.

The company also guided for $780 million to $805 million in third quarter sales, off from analyst estimates of about $845.3 million.

Netflix shares were down 6.5 percent ($17.97 per share) to $258.61 each in after-hours trading Monday.

— Jeff Baumgartner, Site Editor, Light Reading Cable

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