Shares of online movie rental firm NetFlix (NFLX: sentiment, chart, options) are trading lower in after hours activity following the company's first-quarter earnings report. For the quarter, NFLX earned $13.4 million, or 21 cents per share. Excluding stock-based compensation, the company would have earned 23 cents per share, topping expectations for 21 cents. Revenue rose 7% to $326.2 million from $305.3 million just missing the consensus estimate for sales of $326.4 million. The number of subscribers also rose, advancing to 8.24 million from 6.80 million a year earlier - falling in between the company's guidance for 8.16-8.26 million.

Today, NFLX rose nearly 2% ahead of the report, closing at $39.32 per share. In electronic trading, however, the stock is down about 12% at $34.60. The reason for the after-hours weakness appears to be the company's guidance. Looking ahead, Netflix expects second-quarter earnings of 33 cents to 42 cents per share on revenue of $334 million to $339 million. Analysts are looking for 39 cents and $335 million, respectively. Meanwhile, the company cut its 2008 earnings guidance to $1.16 to $1.29 per share but raised its revenue forecast to $1.35 billion to $1.39 billion.

Sentiment heading into the report was somewhat complacent on the options front, as NFLX's Schaeffer's put/call open interest ratio (SOIR) of 1.01 falls in the 66th percentile of its annual range. However, analysts are heavily bearish, as Zacks.com reports that 8 of the 12 following the stock rate it a "hold" or worse.