Looking ahead to the fourth quarter, Netflix expects its growth to continue, calling for revenue to increase to 16.7% to $11.96 billion. It also sees $5.45 at EPS, reflecting higher content spend in the fourth quarter. Those figures compared favorably with the consensus at $11.9 billion in revenue and $5.43 in EPS.

Netflix saw shares dip 6% pre-market due to a one-time tax issue in Brazil. But with strong content and growing ad revenue, it remains a solid investment.

Netflix Inc. (NFLX.O) missed Wall Street's third-quarter profit projections due to an unexpected tax bill in Brazil.

"This past quarter's results did deliver a headline miss; however, the underlying fundamentals are very much intact," Deutsche Bank analysts say

Netflix, Inc. stock dropped after a Brazilian tax expense hit margins, but revenue and engagement remain strong. Click for more on NFLX Q3 earnings.

Analysts stuck to ratings and share price targets after a Brazil tax dispute hit the bottom line and stock price, with some waiting for year-end results, while at least one tells investors to "buy the dip.

The share price of streaming giant Netflix dropped by 7% as the company reported disappointing third-quarter earnings and blamed a Brazilian tax dispute.

What Happened? Shares of streaming video giant Netflix (NASDAQ: NFLX) fell 9.7% in the morning session after the company reported third-quarter results overshadowed by a large, unexpected tax expense in Brazil,