Netflix: Defenders Rush in After Disappointing Forecast

July 24, 2009 at 10:50 am PT

Netflix (NFLX) shares are plunging this morning after the company last night reported Q2 revenue in line with estimates and profit per share better-than-expected, and forecast the rest of the year to be about in line with estimates.

Apparently, just meeting estimates is not good enough with a stock that was trading at a multiple of 26 times this year’s earnings at last night’s close.

Sales rose 21 percent in Q2, Netflix said, to $408.5 million, up four percent from the prior quarter, and profit per share rose to 54 cents. That compares to estimates of $409.72 and 50 cents.

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