Netflix Shares Fall After Streaming Company Adds Fewer Subscribers Than Expected In Q1

Netflix Inc. shares fell nearly 4% in post market trading after the streaming giant reported it added fewer subscribers than Wall Street had expected during the first quarter. Net income for the first quarter came in at $178.2 million, or 40 cents per share, which was an improvement compared with the $27.7 million, or 6 cents per share the company reported during the same period a year ago. Analysts following the company on FactSet expected earnings per share to be 37 cents. Revenue for the quarter hit $2.64 billion, above last year's $1.96 billion and in line with FactSet's $2.64 billion revenue consensus. Netflix stock was likely driven down by the fact it added 4,950 subscribers during the quarter, which was lower than FactSet's expected 5,320 new subscribers and below Netflix's guidance for 5,200 net adds. The big drop off was in international streaming where Netflix added 3,530 memberships, which was softer growth than the 4,510 it added in the year-earlier period and the 5,120 it added during the most recent fourth quarter. Netflix said it expects to add 3,200 new subscribers in the second quarter. Shares of Netflix have gained nearly 19% in the year to date and 32% during the last 12 months. Comparatively, the S&P 500 index is up nearly 5% in the year and the Dow Jones Industrial Average is up more than 3%.