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Major Movers on June 25; NFLX, BKS, WAG, P, IPXL

Shares of Netflix Inc. (NASDAQ: NFLX) fell 3% by afternoon trade after Bernstein’s senior equity analyst, carlos Kirjner downgraded the internet streaming company’s stock to “underperform” from “market-perform”. Bernstein has a price target of $180. The firm said current valuation reflected “unrealistic expectations.” In his research note, Kirjner wrote, “We believe Netflix will grow its subscriber base, will expand its margins and will be able to replicate its business model in different geographies….However, we also believe that the stock’s current valuation reflects unrealistic expectations across all major economic and strategic levers of the business.”

Shares of Barnes & Noble Inc. (NYSE: BKS) slumped about 18%. The bookseller reported on Tuesday that fiscal fourth quarter losses more than doubled due to continued slump in sales at its Nook digital division. The Company said it would now stop manufacturing color tablets and instead source them from third party manufacturers.

For the fiscal fourth quarter ended April 27, Barnes & Noble said that its revenue tumbled 34% to $108 million. Losses before interest, taxes, depreciation and amortization, stood at $177 million compared to a loss of $77 million, in the same quarter of last year.  The company booked $133 million towards inventories write offs. Sales at Nook digital business division plunged 10% while earnings before interest, taxes, depreciation and amortization, fell 24%.

In all, net loss widened to $118.6 million or $2.11 a share from $56.9 million or $1.06 a share, in the year-earlier quarter. Revenue fell 7.4% to $1.28 billion.

Shares of Walgreen Company (NYSE: WAG) fell about 7% by afternoon trade. The healthcare service provider said on Tuesday that fiscal third quarter earnings increased 16%, driven by sales growth at its pharmacy segment and higher demand for its low-priced but higher margin, generic drugs business. However, results fell short of analysts’ consensus estimate as lower customer traffic at its stores hindered growth.  For the fiscal third quarter ended May 31, the drugstore chain reported net income of $624 million or 65 cents a share up from $537 million or 62 cents a share. Stripping out onetime items such as restructuring related charges, adjusted earnings stood at 85 cents a share up from 72 cents a share. Revenue rose 3.2% to $18.31 billion. Analysts’ consensus estimate was for earnings of 91 cents a share on revenue of $18.43 billion, according to a data compiled by Thomson Reuters.

Shares of Pandora Media Inc. (NYSE: P) rallied about 7.20% by afternoon trade. The world’s biggest online radio service provider said on Tuesday that its U.S. listenership in cars exceeded 2.5 million now. In an e-mailed statement released on Tuesday, Pandora Media’s Chief Marketing Officer Simon Fleming-Wood said that listeners now receive its service from eight car stereo system makers and 23 auto brands, adding that from this year onwards, more than 100 auto models will provide Pandora services.

Shares of Impax Laboratories Inc. (NASDAQ: IPXL) climbed about 7.50% by afternoon trade. The company announced on Tuesday that its President and Chief Executive, Larry Hsu is planning to quit from his positions but will continue to serve as a board member after his successor is appointed.

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