4/21/14 6:06 PM ET (MarketWatch)
By Wallace Witkowski, MarketWatch
SAN FRANCISCO (MarketWatch) -- Netflix Inc. shares surged in the extended session Monday after the streaming video company's first-quarter earnings and outlook topped Wall Street estimates.
Netflix (NFLX) rose 6.6% to $371.40 in heavy trading after the company reported first-quarter earnings of 86 cents a share on revenue of $1.27 billion. Analysts were looking for 81 cents a share on revenue of $1.27 billion.
The company also forecast earnings of $1.12 for the second quarter. Analysts expect second-quarter earnings of $1 a share. The company also said it was raising prices for new members. CEO Reed Hastings said on the conference call that most of the price increase would go to content acquisition. Follow Netflix's conference call on our live blog.
Recently, short positions on shares of Netflix have declined even as the stock has fallen from its March 4 closing high.
Shares of Allergan Inc. (AGN) and Valeant Pharmaceuticals International Inc. (VRX) rallied following reports that Pershing Square's Bill Ackman and Valeant were teaming up to take over Allergan.
Allergan shares rallied 21% to $171.71 on heavy volume and shares of Valeant advanced 8.7% to $137 on heavy volume.
Shares of Rambus Inc. (RMBS) declined 6.5% to $11.50 on moderate volume after the company reported adjusted earnings of 17 cents a share on revenue of $78.3 million. Analysts expected 4 cents a share on revenue of $74.3 million. However, Rambus forecast second-quarter revenue of between $69 million and $74 million, while analysts expect $74.3 million.
Shares of Zions Bancorp. (ZION) slipped 0.1% to $30.20 on light volume after the bank reported a decline in first-quarter earnings.
Rent-A-Center Inc. (RCII) shares rose 3% to $26.55 on light volume after the company said it was closing about 150 stores and tempered its outlook.
More from MarketWatch:
Apple, Amazon top tech market-value losers
Netflix stock no longer a favorite of the short-selling set
-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 21, 2014 18:06 ET (22:06 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.
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