Netflix Earnings Show a Mixed Second Quarter

The company blows past EPS expectations but comes up short in subscribers.

Successful pay-for-play subscription plans, such as Netflix and Amazon, have not curbed widespread piracy of copyrighted content, according to a study by British brand protection firm NetNames.

Successful pay-for-play subscription plans, such as Netflix and Amazon, have not curbed widespread piracy of copyrighted content, according to a study by British brand protection firm NetNames.

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Zoe Barnes and Lucille Bluth did their best, but Netflix second quarter earnings left investors cold.

The company's latest figures showed mixed results, blowing past earnings-per-share estimates at $0.49, ahead of analysts' expected $0.40, according to Yahoo! Finance. The company met revenue expectations of $1.07 billion, as well, and posted positive free cash flows for the first time since the second quarter of 2012.

[READ: Netflix Gains 630K Subscribers as 2Q Earnings Soar]

However, the company brought in 630,000 new domestic subscribers in the quarter, bringing the total U.S. member base to 29.8 million, but fell below Wall Street expectations of around 700,000, according to CNBC. New subscriber expectations had been driven by the company's growing offerings of original content, like political drama "House of Cards," as well as the revival of popular sitcom "Arrested Development." This week, Netflix original series garnered 14 Emmy nominations.

Though investors may have been disappointed by subscription numbers, CEO Reed Hastings and CFO David Wells put a positive spin on the figures in a letter to shareholders.

"We generally expect net additions in Q2 to be lower than prior year Q2 due to increased net-add seasonality as we grow," they wrote. "This Q2, however, was an exception, we believe due to the launch of 'Arrested Development,'" which because of its established and loyal fan base helped to boost subscribership.

[ALSO: Netflix Makes History with Emmy Nomination]

The earnings, which came in after the closing bell, pulled after-hours trading downward by over 6 percent at publication time, bringing the share price to around $262.

That share price has been much watched in recent months, as Netflix's price-to-earnings ratio has skyrocketed, from around 113 as of Christmas to 570 now, according to YCharts. That jump has led many analysts to speculate as to whether the company's stock is overpriced. Markets' tepid reaction to the latest earnings report may mean that measure will cool down in the days to come.

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