Netflix’s missed the earnings target set by stock market analysts during the video streamer’s latest quarter, a letdown that the company blamed on a tax dispute in Brazil

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

Netflix missed Wall Street's third-quarter earnings targets because of an unexpected expense from a dispute with Brazilian tax authorities.

The company’s earnings came in below expectations, with the stage set for big gains with the company’s ad business in the fourth quarter.

Netflix missed the earnings target set by stock market analysts during the video streamer’s latest quarter, a letdown that the company blamed on a tax dispute in Brazil. The results announced Tuesday broke Netflix's six-quarter streak of posting a profit that eclipsed analysts' projections.

The dominant streamer reported higher revenue and profit, driven by membership growth, increased ad revenue and price increases, but shares slumped on a tax-dispute expense.

Netflix missed Wall Street third-quarter earnings targets because of an unexpected expense from a dispute with Brazilian tax authorities and it offered a forecast a touch ahead of Wall Street projections for the rest of the year.

Netflix fell short of Wall Street analysts’ earnings expectations in the third quarter and said a dispute with Brazilian tax authorities kept operating margins from meeting its guidance. Revenue came in on target during the June-to-September period,