Netflix’s (NFLX) stock has taken a beating over the past year — Netflix shares were trading around $80 on Tuesday, down from a 52-week high of $285.50 — but things have been looking marginally brighter in recent months. The company posted a narrower than expected $5 million loss in the first quarter this year, and Wall Street was expecting a profit of $0.05 per share on $888.9 million in sales for the June quarter. Netflix posted its second-quarter results shortly after the close of the market on Tuesday, and it beat analysts’ consensus with a profit of $0.11 per share on revenue of $889 million.
Despite the positive earnings news, the company said that it expected to report a loss in the fourth quarter of 2012 due to a launch in a new international market. Netflix expects that this operating loss will only be a temporary setback, however, and expects a return to profitability in the following quarter. The company’s earnings report apparently didn’t satisfy investors as the company’s stock fell 14% in after-hours trading following the announcement.
