Netflix beats Q1 but light Q2 guidance sends shares down

businesscompany-earningsstocks 2 posts · 1 accounts

Netflix reported $12.25 billion in first-quarter revenue and $1.23 EPS, but light second-quarter EPS and margin guidance sent shares down 8.1%; Reed Hastings also said he will leave the board.

From the sources (2 posts)

@zerohedge

*NETFLIX SEES 2Q EPS 78C, EST. 84C *NETFLIX CO-FOUNDER REED HASTINGS TO LEAVE BOARD WHEN TERM ENDS

@zerohedge

*NETFLIX 1Q REV. $12.25B, EST. $12.17B *NETFLIX 1Q EPS $1.23 VS. 66C Y/Y *NETFLIX SEES 2Q OPER MARGIN 32.6%, EST. 34.4%

Market impact

30 small

NFLX

Why it matters: Netflix's light Q2 EPS/margin guidance (78c vs 84c est; 32.6% vs 34.4% margin est) plus the board departure sent its own shares down ~8%, but the guidance is company-specific with no genuine read-through to a streaming sub-sector or index.

At publish time: Headline states shares down 8.1% on light Q2 guidance despite a Q1 beat, plus Reed Hastings leaving the board — a forced negative guidance surprise visible in the facts alone.

model confidence: high

What happened next

1–2 weeks later

played out moved down

NFLX fell ~9% on light Q2 guidance and Hastings board exit, staying soft into early May; company-specific move, no streaming-sector read-through, as tagged.

based on follow-up coverage

Follow-up coverage

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