Netflix (NFLX), Tesla (TSLA), and IBM Experience Major After-Hours Stock Surge

Discover the latest news about notable companies in extended trading.

Netflix — The shares of the streaming giant plummeted more than 5% after the release of its quarterly results on Wednesday. Netflix stated that it is too early to determine the impact of its crackdown on password sharing and revenue generated from its ad-supported offering. In the last quarter, Netflix reported earnings of $3.29 per share and revenue of $8.19 billion, surpassing analysts’ expectations of $2.86 per share and $8.3 billion in revenue.

IBM — The shares of the business services company fell 0.7% following its mixed second-quarter earnings report. IBM reported revenue of $15.48 billion, which fell short of Wall Street’s forecast of $15.58 billion. However, the company’s adjusted earnings of $2.18 per share exceeded analysts’ consensus estimate of $2.01 per share.

Tesla — Tesla shares experienced fluctuations near the flatline following the company’s second-quarter earnings announcement. Despite reporting record-high quarterly revenue, Tesla’s operating margins dropped to 9.6%, the lowest level in the past five quarters due to price cuts and incentives.

United Airlines — Following its second-quarter earnings release, United Airlines shares surged 2.5% as it beat analysts’ expectations despite flight disruptions at its Newark, New Jersey, hub. The company reported adjusted earnings of $5.03 per share and total revenue of $14.18 billion, surpassing analysts’ estimates of $4.03 earnings per share and $13.91 billion in revenue. United Airlines also provided a stronger-than-expected forecast for the current quarter. American Airlines shares rose 1.4% following this news.

Zions Bancorp — The shares of the regional bank rallied 7% after it reported earnings that exceeded analysts’ estimates. Zions posted earnings per share of $1.11 in the second quarter, surpassing the consensus estimate of $1.08.

Las Vegas Sands — Despite beating expectations on both the top and bottom lines, the stock of the resort developer declined by nearly 3%. Las Vegas Sands reported adjusted earnings of 46 cents per share and revenue of $2.54 billion in the second quarter, while analysts anticipated earnings of 43 cents per share and revenue of $2.39 billion.

Discover Financial — Shares of the digital banking company plunged 13% after its second-quarter results fell short of analysts’ estimates. Discover Financial reported earnings per share of $3.54 and revenue of $3.88 billion, below analysts’ expectations of $3.67 earnings per share and revenue of $3.88 billion. The company also disclosed that it is currently in discussions with regulators regarding a “card product misclassification” issue and has temporarily halted share buybacks.