Streaming video leader Netflix late Thursday edged above Wall Street's targets for the second quarter and guided higher than views for the current period. But Netflix stock dipped in extended trading.
The internet television network earned $7.19 a share on sales of $11.08 billion in the June quarter. Analysts polled by FactSet had expected Netflix to earn $7.07 a share on sales of $11.06 billion. On a year-over-year basis, Netflix earnings rose 47% while sales increased 16%.
For the current quarter, Netflix forecast earnings of $6.87 a share on revenue of $11.53 billion. Wall Street had been looking for Q3 earnings of $6.69 a share on sales of $11.28 billion. In the third quarter last year, Netflix earned $5.40 a share on sales of $9.82 billion.
Netflix also raised its 2025 revenue forecast to $45 billion at the midpoint of its range, up from $44 billion. Analysts have been modeling full-year revenue of $44.5 billion. Last year, Netflix generated $39 billion in sales.
In a letter to shareholders, the company noted that it has completed the rollout of the Netflix Ads Suite, its proprietary first-party advertising tech platform.
Netflix Stock Is On Three IBD Lists
Popular Netflix programming in the second quarter included series "Squid Game," "Sirens," "Ginny & Georgia," "The Eternaut" and "Secrets We Keep." Hit movies on the service included "Tyler Perry's Straw" and "Exterritorial."
"We're optimistic heading into the second half of the year, with a standout slate," Netflix management said in the letter. That content includes "Wednesday" season two, the "Stranger Things" finale, the Canelo-Crawford live boxing match, Adam Sandler's "Happy Gilmore 2," Kathryn Bigelow's "A House of Dynamite" and Guillermo del Toro's "Frankenstein."
In after-hours trading on the stock market today, Netflix stock dropped a fraction to 1,267. During the regular session Thursday, Netflix stock rose 1.9% to close at 1,274.17.
Netflix stock is on three main IBD lists: IBD 50, Leaderboard and Big Cap 20.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
