SAN FRANCISCO — Netflix pressed the rewind button on its fourth-quarter earnings after settling allegations that the video subscription service violated a consumer-privacy law.
Accounting for the $9 million settlement resulted in a 14 percent decrease in the fourth-quarter net income that Netflix Inc. reported Jan. 25.
The bottom line for the final three months of last year now comes to $35.2 million, or 64 cents per share, down from the previously reported $40.7 million, or 73 cents per share. The company, which is based in Los Gatos, disclosed the change in a regulatory filing late Friday.
Netflix’s stock price has surged 23 percent since the fourth-quarter results were released, partly because the company’s earnings were substantially above analysts’ average estimate of 57 cents per share. But investors mostly were impressed with Netflix’s fourth-quarter gain of 600,000 subscribers – a number unaffected by Friday’s accounting adjustment
The upturn in…
View original post 368 more words