Shares of Netflix (NFLX)  surged 10% to $178.98 in after-hours trading on Monday after the streaming giant posted stronger-than-expected results for the second quarter of 2017 and gave an upbeat outlook for the third quarter.

Netflix posted revenue of $2.78 billion for the quarter, surpassing analysts' projected $2.76 billion in sales. Adjusted earnings were 15 cents per share, missing consensus estimates by a penny. 

The company crushed Wall Street's expectations for new subscribers. Netflix said it had 1.07 million new U.S. subscribers during the period, trouncing analysts' predicted 631,000 new domestic subscribers. It also added 5.2 million new international subscribers, which was higher than analysts' estimated 2.6 million new international subscribers.

For the third quarter of fiscal 2017, Netflix expects to post adjusted earnings of 32 cents per share and roughly $3 billion in revenue. The company predicts it will add 4.4 million new international subscribers and 750 million U.S. customers. That's higher than Wall Street's expectations for adjusted earnings of 23 cents per share and $2.9 billion in sales, as well as net U.S. adds of 725,000 subscribers and 2.59 million international subscribers.

Quiz: Where Were Your Favorite Netflix Series Filmed?

Netflix has now exceeded its EPS guidance for seven quarters in a row, according to data from Wedbush analyst Michael Pachter. 

The company recently decided to shift the bulk of its original content releases to the second quarter, which likely helped to prop up this quarter's results. When Netflix made the move, it said that the second quarter used to be a traditionally slower period for new subscriber adds. This quarter, Netflix released 14 new seasons from popular shows such as House of Cards, Orange Is the New Black, Unbreakable Kimmy Schmidt and Master of None, among others. 

Netflix also grabbed some headlines when it decided to cancel a few high-profile shows like The Get Down and Sense8 earlier this year. In a statement on Monday, Netflix said that those decisions are difficult, but that they're part of making "bold programming choices" while being financially disciplined. 

"Sometimes those shows don't attract as many viewers as we had hoped, compared to our other content," the company wrote. "As much as as we dislike ending a series early, it consoles us that it frees up investment for another new show, or two." 

On the film side, Netflix said it expects to release 40 new titles this year.

What's Hot On TheStreet

Amazon wants to upend every business, or so it seems: New day, a new business Amazon (AMZN) wants to dip its toes in. The latest looks to be the meal kit space, TheStreet reports.

In a July 6 trademark application, Amazon subsidiary Amazon Technologies Inc. revealed it's planning "prepared food kits composed of meat, poultry, fish, seafood, fruit and/or and [sic] vegetables...ready for cooking and assembly as a meal," as well as primarily grain-based offerings.

The product's tagline: "We do the prep. You be the chef." Amazon already sells other companies' meal kits, including Tyson Foods Inc.'s (TSN) Tyson Tastemakers. Martha Stewart is even offering meal kits on Amazon Fresh, the company's grocery delivery service. But, this may be the first hint of something bigger for Amazon, which would put it in direct competition with newly minted IPO Blue Apron (APRN) .

Elon Musk keeping it real for a change: Tesla's (TSLA) Elon Musk just gave the obsessed bulls on his company's future something to strongly consider, TheStreet reports.

Speaking at the National Governors Association Summer Meeting in Rhode Island on Saturday, Musk reiterated that shares of Tesla are trading at a level "higher than we have any right to deserve" based on optimism about the company's future.

"Those expectations sometimes get out of control," Musk added. Meanwhile, TheStreet reports Tesla could be at risk of a nasty surprise soon: the end of tax credits for electric cars in the U.S.

Procter & Gamble under siege: Peltz's Trian Fund Management plans to launch a fight for a board seat at Procter & Gamble (PG) , making it the largest company to face a proxy battle, The Wall Street Journal reported Monday.

Trian, which owns about $3.3 billion of P&G stock, is said to be seeking a single board seat for Peltz at the company's annual meeting that could take place in October. P&G have reportedly been in talks for five months, but the company is said to have rejected to name Peltz as a director last week.

Sales at P&G -- and its stock price -- have stalled due to pricing pressure and competition.

As TheStreet's Ron Orol reported in June, look for the consumer packaged goods company to announce plans for spin-offs, sales or even a swap out of business units. If major M&A doesn't come soon, a Trian director-battle or white paper chock full of activist demands could be next.

And Trian likely will demand significant M&A activity. Spinoffs and other major deals often follow when the activist investor acquires a large stake. Trian and other activist fund managers often push to have large companies break themselves up with the goal of extracting value by focusing the market on various parts of a business that might be hiding inside confusing conglomerate structures.

More of What's Trending on TheStreet:

More from Stocks

Listen: Should You Buy Cisco Now?

Listen: Should You Buy Cisco Now?

Amazon Could Devastate Walgreens and Rite Aid by Getting Into Pharmacy Business

Amazon Could Devastate Walgreens and Rite Aid by Getting Into Pharmacy Business

Amazon's Assault on Grocery Stores Will Have a Profound Impact on Many

Amazon's Assault on Grocery Stores Will Have a Profound Impact on Many

Why PayPal's CEO Doesn't Fear Amazon Entering Mobile Payments

Why PayPal's CEO Doesn't Fear Amazon Entering Mobile Payments

9 Stocks Goldman Sachs Thinks Will Blow Wall Street's Performance Away in 2019

9 Stocks Goldman Sachs Thinks Will Blow Wall Street's Performance Away in 2019