Netflix Q3 miss blamed on Brazil tax charge

STORY: :: NetflixNetflix missed Wall Street's third-quarter earnings targets due to an unexpected expense from a Brazilian tax dispute.Failing to impress investors used to fast-paced growth, shares tumbled by 5.6% in after-hours trading on Tuesday.Netflix posted net income of $2.5 billion for July through September, but analysts had expected $3 billion according to LSEG.Netflix reported an operating margin of 28% for the third quarter.Without the Brazilian tax expense of roughly $619 million, the margin would have exceeded the company's guidance of 31.5%.Despite the blip due to an unforeseen expense, analysts said it was a robust quarter for Netflix. :: FileNetflix expects $11.96 billion in fourth-quarter revenue, slightly above Wall Street’s forecast, as it rolls out the final season of Stranger Things and streams two live NFL games at Christmas.With 300 million users worldwide, Netflix is branching into ads and video games, though analysts say those moves haven’t boosted revenue much yet.Netflix was reported by CNBC to be among the interested parties in a potential sale of Warner Bros Discovery assets. Co-CEO Ted Sarandos told analysts the company "can and will be choosy" about acquisition targets.

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