Netflix expects fourth-quarter revenue of $13.4 billion, below expectations; stock falls 7%

Netflix (NFLX.US) reported third-quarter earnings that exceeded Wall Street expectations, but the company anticipates its revenue growth will slow for a fourth consecutive quarter. This outlook may further heighten market concerns about the global leading streaming platform's operating performance. Netflix's third-quarter revenue was $12.9 billion, in line with Wall Street expectations. The company expects fourth-quarter revenue this year to reach $13.4 billion, below analysts' forecasts. Its revenue growth has slowed from 17.6% in the fourth quarter of last year and is expected to further decline to 11.5% in the fourth quarter of this year. Netflix attributed the revenue shortfall to its advertising business, projecting income from this segment will be $300 million less than previously anticipated. After the earnings report, Netflix's share price once fell by 7%.