Netflix Surpasses Market Expectations in Second Quarter Results

The streaming service Netflix again exceeded the market's expectations for profit and sales – now in the company's report for the second quarter.

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Netflix Surpasses Market Expectations in Second Quarter Results
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The profit per share was $7.19, compared to $7.08 expected according to the analysis company LSEG.

The turnover landed at $11.08 billion, while expectations were $11.07 billion, reports CNBC.

Thus, the turnover increased by 16 percent compared to the same quarter last year.

During the first quarter, Netflix positively surprised with a turnover increase of 13 percent compared to the same period last year, but it was largely due to raised prices.

Expectations for Netflix have increased, among other things due to a new season of the successful series "Stranger things". The company's share price has almost doubled in the last year, which has increased the market value by approximately $250 billion.

During the third quarter of this year, analysts on average expect a profit of $6.70 per share and a turnover of $11.3 billion, reports the news agency Bloomberg.

This would mean an increase of 24 and 15 percent respectively compared to the same quarter last year.

Netflix shares are priced for perfection, there is not much room for mistakes. Everyone expects the second half of the year to be really strong, says Daniel Morgan, senior portfolio manager at Synovus Trust.

His expectations are reflected in Thursday's report where Netflix predicts that the turnover for the full year will land somewhere between $44.8 and $45.2 billion. It is an increase from the previous forecast, which was $43.5-44.5 billion.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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