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Netflix (NFLX), AmEx (AXP) Report Mixed Q4

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Netflix (NFLX - Free Report) has just reported Q4 earnings following the closing bell today, with mixed results that are sending shares down 4% in late trading. Earnings of 30 cents per share beat the Zacks consensus of 24 cents, though revenues came in light of expectations at $4.19 billion, as opposed to the $4.21 billion analyst were looking for.

Overall, 8.8 million new paid subscribers joined Netflix in the quarter — 1.53 million in the U.S. and 7.31 million overseas — though this is also light of estimates for 9.4 million net adds. The company projects negative free cash flows for the year as the company continues to invest in new content, which is driving Netflix sales. Guidance for Q1 is lighter than expected on top and bottom lines.

After gaining in stock price 15% since the start of the year, anything less than a full blowout number was likely going to lead to a sell-off in shares during after-market, and this was something less than a blowout number. Yet after initially dropping in the immediate aftermath of the report’s release, shares have fought back a bit at this hour (though they are back down 4% currently).

American Express (AXP - Free Report) also improved over projections of $1.80 per share in its Q4 reported after the bell, although tax benefits are muddying up this bottom-line result, reportedly $2.32 per share. Revenues missed expectations, however — $10.47 billion was beneath the $10.58 billion in the Zacks consensus — which is what led to another initial 4% sell-off (which has ebbed a bit back to -2.5%). Earnings guidance for fiscal 2019 is stronger, however, to a range of $7.89-8.35 per share; the Zacks consensus had been $7.39 per share.

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