Netflix shares slip after Q3 earnings despite meeting revenue forecast

Netflix posted its third-quarter results for the period ending Sept. 30, showing revenue of roughly $12.9 billion, in line with analysts' estimates, and earnings per share of 87 cents, which beat the consensus forecast of 82 cents. > "Our full-year revenue guidance is now $51.1 billion, representing a 13% year-over-year increase," the company said, noting that the figure sits at the lower end of its previously indicated range and below the $51.2 billion analysts had anticipated. The guidance prompted investors to reassess growth prospects, and the stock fell further, trading around $63.90 after the report. The decline follows a year-to-date drop of about 30%, bringing the share price to levels not seen in more than two years. Analysts note that the stock now trades at a forward price-to-earnings multiple of 17, compared with an average of 19 for the S&P 500, suggesting a relatively lower valuation.