Netflix reports 3Q profit
LOS GATOS, Calif. (AP) — Netflix Inc. on Wednesday reported third-quarter profit of $665.2 million.
On a per-share basis, the Los Gatos, California-based company said it had profit of $1.47.
The results beat Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $1.05 per share.
The internet video service posted revenue of $5.24 billion in the period, which missed Street forecasts. Eleven analysts surveyed by Zacks expected $5.25 billion.
For the current quarter ending in December, Netflix expects its per-share earnings to be 51 cents.
The company said it expects revenue in the range of $5.44 billion for the fiscal fourth quarter. Analysts surveyed by Zacks had expected revenue of $5.52 billion.
Netflix shares have risen 7% since the beginning of the year, while the Standard & Poor’s 500 index has increased 19%. In the final minutes of trading on Wednesday, shares hit $286.61, a drop of 17% in the last 12 months.
Bank of America profit falls
NEW YORK (AP) — Bank of America’s third quarter profits fell 19% from a year ago as the bank wrote down the value of its long-time joint venture payment processor First Data.
Excluding that non-cash charge the bank topped expectations, though it’s being pressured by falling interest rates.
The bank, based in Charlotte, North Carolina, reported a profit of $5.8 billion, or 56 cents a share, down from $7.2 billion, or 66 cents a share, in the same period a year earlier. Excluding the one-time charge, the bank’s profit in the quarter was $7.5 billion, or 75 cents a share.
The results exceeded Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 50 cents per share.
Bank of America had to write off the value of its First Data partnership after First Data was acquired by Fiserv earlier this year. Both companies do payment processing for merchants at the point-of-sale.
Low interest rates are taking a toll on the banking sector. Bank of America typically is invested in shorter-term bonds and securities, which are more impacted by the Federal Reserve’s interest rate decisions. As rates rose the last two years, BofA benefited greatly, posting some of the best profit gains in the industry. But now that the trend is reversed.