Netflix posts higher Q3 profit but revenue growth worries pull shares lower

Netflix, which announced layoff plans last week, posted a third-quarter profit above Wall Street's expectations, but investors sent shares down after the streaming company lowered its ad sales guidance, prompting worries about slowing revenue growth.Netflix said Tuesday it earned $3.66 billion, or 87 cents per share, for the July-September period. That's up 44% from $2.55 billion, or 59 cents per share, a year earlier. Revenue rose 12% to $12.87 billion from $11.51 billion.Analysts surveyed by FactSet predicted earnings of 82 cents per share on revenue of $12.87 billion.“With Netflix under pressure to find alternative lines of revenue beyond subscriptions, it’s concerning that the company lowered its estimate for its ad business,” said Emarketer senior analyst Ross Benes. "Revamping content strategy is not enough to fix this challenge but it is a worthwhile start. Guidance is not as aggressive as investors have grown accustomed to.”Last week, the Los Gatos, California-based company ann