Netflix Q2 Revenue Forecast of $12.57B Misses by $70M, Hastings to Leave Board
Netflix forecast second-quarter revenue of $12.57 billion and EPS of $0.78, missing consensus by $70 million and $0.06 while projecting a 13% year-over-year growth low. Co-founder Reed Hastings will leave the board in June following first-quarter results showing $12.25 billion revenue and $1.23 EPS.
1. Soft Q2 Outlook
Netflix guided second-quarter revenue to $12.57 billion, below the $12.64 billion consensus, and forecast EPS of $0.78 versus $0.84 expected. The company cited front-loaded content spending and peak content amortization in Q2, projecting revenue growth of 13%, the slowest in a year.
2. First-Quarter Earnings Beat
In the first quarter, Netflix delivered $12.25 billion in revenue, up 16% year-over-year and above the $12.18 billion consensus, with net income of $5.28 billion, or $1.23 per share, driven in part by a $2.8 billion breakup fee from a failed acquisition.
3. Hastings’ Board Departure
Co-founder and chairman Reed Hastings will step down from the board at the June annual meeting to focus on charitable work and personal projects. Management confirmed his exit is unrelated to the collapsed Warner Bros. deal, emphasizing continuity under current leadership.