Netflix shares fell more than 8% in after-hours trading , as a disappointing second-quarter outlook and leadership changes outweighed otherwise solid first-quarter results. Weak Guidance Sparks Sell-Off Netflix forecast Q2 earnings of US$0.78 per share , below analyst expectations of US$0.84 , while revenue is projected at US$12.57 billion , missing the US$12.64 billion consensus . The weaker guidance raised concerns over near-term growth momentum , triggering a sharp negative market reaction. Strong Q1 Performance Fails to Impress For the first quarter: Revenue rose 16% YoY to US$12.25 billion (above estimates) Earnings surged 86% to US$1.23 per share However, earnings were boosted by a US$2.8 billion one-off termination fee , reducing the quality of underlying growth. Operating margin improved to 32.3% , but still came in below expectations (32.4%) , further dampening sentiment. Rising Costs and Strategic Sh...
KUALA LUMPUR (Sept 14): The FBM KLCI closed 4.7 points or 0.3% lower with Asian share markets after China reported weaker-than-expected economic data, which included factory output and retail sales growth.
At 5pm, the KLCI settled at 1,781.37 points. In China, the Shanghai Stock Exchange Composite dropped 0.38%, while Hong Kong’s Hang Seng shed 0.42%. Japan’s Nikkei 225 fell 0.29%.
In Malaysia, Malacca Securities Sdn Bhd analyst Kenneth Leong told theedgemarkets.com: “The KLCI was trading mostly in negative territory today, in line with weakness across key regional indexes, due to China’s factory output and retail sales growth data, which came in below economists’ expectations.”
Reuters reported China's factory output grew 6.0% in August from a year earlier, while fixed-asset investment expanded 7.8% in the first eight months, both well below economists' forecasts, data showed on Thursday.
Analysts polled by Reuters had predicted factory output to grow 6.6% in August, up from 6.4% in the previous month. Fixed-asset investment had been forecast to grow 8.2% over the first eight months of the year, which would have marked a slight moderation from 8.3 growth in January-July.
Retail sales rose 10.1% in August from a year earlier, the statistics bureau said, cooling from July's 10.4% pace and below analysts' expectations for a 10.5% increase.
In Malaysia, Leong said the broader market faced negative sentiment today, as share trade volume and value across Bursa Malaysia dropped.
The bourse saw 1.89 billion shares, traded for RM1.81 billion. Decliners outnumbered gainers at 464 to 376 respectively.
“Trading volume is also below the 2 billion mark, which is not so encouraging,” Leong said. Yesterday, Bursa Malaysia registered a share trade volume of 2.7 billion shares, worth RM1.85 billion.
Source: The Edge
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