The share price of streaming giant Netflix dropped by 7% as the company reported disappointing third-quarter earnings and blamed a Brazilian tax dispute.
Oct. 21 Netflix reported increased third-quarter earnings after the closing bell on Wall Street on Tuesday, but its share price dropped by about 7% when earnings per share were lower than expected.
Netflix reported $11.5 billion in revenues, which is what it expected, but earnings per share were $5.87 and significantly less than its expected $6.97 per share for its third quarter.
The streaming service reported a revenue gain of 17% during the quarter, but the lower earnings per share triggered a drop in its share price during after-hours trading on Tuesday, Matthew Keys reported on social media.
Netflix officials blamed a tax dispute with Brazilian officials for its lower-than-expected earnings per share number.
