Netflix (NFLX) Ends 3-Day Run After $620-Million Tax Blow

We recently published Market Shockers: 10 Stocks Collapse by Double Digits. Netflix Inc. (NASDAQ:NFLX) is one of the best performers on Wednesday.

Movie streaming giant Netflix Inc. (NASDAQ:NFLX) snapped a three-day winning streak on Wednesday, dropping 10.07 percent to close at $1,116.37 after getting hit by a tax blow in Brazil in what would have been a quarter that exceeded company expectations.

In an updated report, Netflix Inc. (NASDAQ:NFLX) said net income in the third quarter of the year grew by 7.7 percent to $2.547 billion from $2.364 billion in the same period last year, while revenues jumped by 17.3 percent to $11.5 billion from $9.8 billion year-on-year, driven primarily by membership growth, pricing adjustments, and increased ad revenue.

However, operating margins ended at 28 percent, well below its earlier guidance of 31.5 percent, due to unforeseen $619 million tax payments to Brazilian tax authorities related to its non-income tax assessment.

Without such expense, Netflix Inc. (NASDAQ:NFLX) would have exceeded its operating margin expectations.

In the fourth quarter of the year, the company is targeting to grow its revenues by 17 percent, to be driven by membership growth, pricing, and ad revenues.

For the full-year 2025, revenues are expected to jump by 16 percent to $45.1 billion, with an operating margin of 29 percent.

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Disclosure: None. This article is originally published at Insider Monkey.