LifeLock Shares Surge 40% After Hours On News Of Litigation Settlement, Earnings Beat

LifeLock Inc. shares surged more than 40% in after-hours trade Wednesday, after the provider of identify theft protection reported a better-than-expected quarter and said it has reached an agreement to settle outstanding litigation. The company said it had a net loss of $65.1 million in the third quarter, or a loss of 68 cents a share, after net income of $5.5 million, or 6 cents a share, in the year-earlier period. The number included a pretax charge of $96 million relating to the proposed settlement, which has not yet been approved. Excluding that charge, it had EPS of 28 cents, ahead of the FactSet consensus of 25 cents. Revenue rose 24% to $152 million, also ahead of the FactSet consensus of $147 million. Shares have gained 26% in the year so far, while the S&P 500 has lost 0.1%.