Netflix (NASDAQ: NFLX) posted mixed fourth-quarter earnings results Thursday.
Earnings per Share came in at 30 cents when the results were posted at Thursday’s closing bell, compared to the 24 cents forecast by economists. Revenues registered at $4.19 billion, down from the $4.21 billion forecast. Domestic subscriber additions came in at 1.53 million, vs. 1.51 million forecast. International subscriber additions were at 7.31 million, vs. 6.14 million forecast.
The quarter was expected to top off an expensive year for Netflix, as the company ramps up content spend and original programming.
Reported EPS represents a 66% markdown from the third quarter of 2018, and a 27% downside from the year-ago quarter.
Revenue for the quarter fell right in line with recent trends, though, hinting at higher expenditures. Fourth-quarter revenue totals mark a 28% year-over-year jump.
The company is guiding toward lower-than-expected results for the first quarter of 2019. Netflix expects earnings per share of 56 cents on revenue of $4.49 billion, compared with Wall Street consensus estimates of 82 cents and $4.61 billion.
Streaming incumbents like Netflix and HBO are increasingly banking on original hits to stave off threats from new streaming entrants like Amazon (NASDAQ: AMZN), Disney (NYSE: DIS) and AT&T (NYSE:T). Netflix said it saw blockbuster hits this past quarter with original movies and scripted series like "Bird Box" and U.K.-based "Bodyguard," and rapidly accelerated viewership in unscripted content.
Shares in NFLX sank $11.27, or 3.2%, to $341.92 Friday morning.
