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After-hours buzz: Netflix, IBM, Illumina & more

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Lucas Jackson | Reuters

Check out the companies making headlines after the bell Monday:

Despite beating earnings estimates, Netflix shares tumbled in extended trading Monday after the entertainment-streaming service reported lighter-than-expected forward guidance. The company said it expected 500,000 net domestic adds and a 2 million net international membership gain in the second quarter.

First quarter earnings came in at 6 cents per share on $1.96 billion in revenue. Analysts had expected Netflix to report earnings of about 3 cents per share on $1.97 billion in revenue, according to a consensus estimate from Thomson Reuters.

Shares of IBM wavered after Big Blue posted earnings per share of $2.35 on $18.68 billion in revenue. Wall Street expected earnings of $2.09 per share on sales of $18.3 billion, according to Thomson Reuters consensus estimates.

The report was expected to illuminate whether the enterprise technology firm could successfully pivot toward software-as-service as businesses shift their technology strategies to the cloud. IBM reported that its quarterly revenue from its strategic imperatives, which include cloud, analytics and engagement, increased 14 percent year over year. Revenue from its cloud services increased 34 percent this quarter and totaled $10.8 billion for the past 12 months.

Biotechnology company Illumina saw shares plunge after announcing preliminary first-quarter revenues that fell well below analyst estimates. The company, which makes equipment for gene sequencing, said it now expects revenues of $572 million, below the $596 million originally planned. The adjustment comes as European sales of the sequencing platforms HiSeq 2500, 3000 and 4000 instruments fell short, the CEO said in a statement.

DISH Network's stock popped after the company announced a lawsuit to halt illegal streaming. The lawsuit, joined by Chinese broadcasters, is aimed at the "h.TV" device, used to access a 24-hour-a-day pirate broadcasting network, according to a statement.

Rambus' stock slid after the bell after the company reported lower-than expected projected sales for the second quarter. The chip and semi-conductor company expects revenues of $72 million to $77 million, it said in a Monday earnings report. That's below the $79 million that was expected by Wall Street.

For the first quarter, Rambus earned 13 cents per share, 1 cent above estimates, on $73 million in sales, in line with estimates.

Shares of Spirit Airlines edged higher after a busy day of news in the airline industry. Ted Christie, the company's chief financial officer, surrendered some shares of the company after the bell, according to SEC filings reported by Dow Jones.

During the day, competitor budget lines Alaska Air and Virgin America filed merger paperwork, raising questions on whether the deal would face scrutiny from antitrust regulators, the Wall Street Journal reported. Meanwhile, Southwest Airlines was the subject of headlines after a University of California, Berkeley, student said he was taken off a flight after another passenger heard him speaking Arabic.

— CNBC's Everett Rosenfeld, Alex Crippen, Juan Aruego and Christine Wang contributed to this report.