Netflix slips despite posting record revenue and hiking sales guidance

Netflix posted strong Q2 earnings results after the bell, including record quarterly revenue.

Revenue came in at a record $11.08 billion, narrowly topping analyst estimates of $11.07 billion and higher the company’s previous guidance of $11.03 billion. Diluted earnings per share landed at $7.19, handily topping the $7.07 estimate from analysts polled by FactSet.

Netflix also hiked its full-year revenue forecast to a range of $44.8 billion to $45.2 billion, up from its previous guidance of $43.5 billion to $44.5 billion.

The company forecast Q3 earnings of $6.87 a share and $11.53 billion in revenue. That compares to analysts’ forecasts for $6.76 of EPS and $11.27 billion of revenue.

That wasn’t enough to satisfy traders, who bid the stock down 0.9% after-hours. The stock has nearly doubled in value over the past 12 months.

Netflix highlighted top-performing original content during the quarter, including “Sirens” and season 3 of “Ginny & Georgia.” It also called out “Squid Game” season 3, now the company’s sixth-biggest season of any series in its history.

The streaming giant did, however, warn that it expected operating margin in the second half of the year to be lower than the first half “due to higher content amortization and sales and marketing.”