Netflix Inc (NASDAQ:NFLX) tumbled in after-market trading on the heels of disappointing guidance. The streaming service smashed its first quarter earnings expectations, posting $0.76 per share compared to an expected $0.57 EPS, but offered a bleaker second quarter outlook. The company expects EPS of $0.55, almost half of the $0.99 EPS expected by analysts. Paid net additions came in at 9.6 million members, but Netflix projects that number to drop to 5 million next quarter, an 8% drop year-over-year.
The stock dropped 0.9% to $356.26 in after-hours trading.
Qualcomm (NASDAQ:QCOM) stock surged after the company reached a settlement agreement with Apple (NASDAQ:AAPL) on its royalty dispute. The companies began court proceedings on Monday. Apple will pay the chipmaker as part of the deal, and the two sides agreed to a six-year licensing agreement, meaning Qualcomm chips will be back in iPhones. As a result of the settlement, Qualcomm expects incremental earning per share of $2 as production increases, the company said.
The San Diego chipmaker saw shares rise 23% to close at $70.45, while the iPhone maker’s stock was flat at $199.25.
Bank of America Corporation (NYSE:BAC) dropped after it fell short of first quarter revenue expectations Tuesday morning. The money center bank saw revenue tick down to $23 billion, compared to analyst estimates of $23.3 billion. In a call with investors, CFO Paul Donofrio said net interest income would likely increase 3% in 2019, down from 6% last year and 5% in the first quarter, Bloomberg reported.
The stock was down 0.4% to $29.71.
Johnson & Johnson (NYSE:JNJ) rose after posting first-quarter results that came in ahead of expectations. The drugmaker brought in adjusted earnings of $2.10 per share, topping Street expectations of $2.04 EPS. The New Jersey company netted $20 billion in sales against expectations of $19.6 billion. Profit, though, fell to $3.75 billion from $4.37 billion the previous year.
Shares rose more than 1% to $138.02.
JB Hunt Transport Services Inc (NASDAQ:JBHT) took a hit when the company missed earnings and revenue expectations late Monday. The trucking company earned $1.09 per share on revenue of $2.1 billion, compared to analyst expectations of $1.26 EPS on revenue of $2.2 billion. Excluding fuel charges, intermodal revenue per load increased 11% but was offset by a 7% decline in volumes.
Investors pumped the brakes, with the stock dropping 5% to $100.28.
UnitedHealth Group Inc (NYSE:UNH) reversed course after early gains despite healthy first-quarter numbers and improved guidance. The health insurer saw adjusted net earnings rise 23% year over year to $3.73 per share and revenue grow 9% to $60.3 billion. That came in ahead of projections of $3.59 EPS on $59.7 billion in revenue. The Minnesota company increased its 2019 outlook on adjusted EPS to between $14.50 and $14.75. Analysts expect $14.65. It didn't stick, as traders remained concerned about a shifing health care landscape. CEO David Wichmann told analysts Tuesday that some of the [policy] proposals being discussed could destabilize the health care system, the Associated Press reported.
The stock dropped 4% to $221.01.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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