Outerwall Cuts Q3 Earnings Guidance (OUTR)
Outerwall Inc. (NASDAQ: OUTR), formerly known as Coinstar, slashed its financial outlook for the fiscal third quarter and fiscal year 2013. The kiosk operator said that huge discounts at Redbox rentals business failed to generate a desired response. Besides, high promotions, although helped attracting new customers, hurt the average size of the transaction. The Company said that revenue and rentals were higher in July and August but “they were not to our expectations.”
Shares plunged almost 20% in aftermarket trading.
For the fiscal third quarter, Outerwall Inc expects core earnings to be in the range of 82 cents to 94 cents a share down from its earlier forecast of $1.36 to $1.51 a share. Revenue is expected in the range of $569 million to $589 million.
Analysts’ consensus estimate was for earnings of $1.43 a share on revenue of $612.6 million.
For the fiscal year 2013, Outerwall anticipates earnings of $4.72 to $5.12 a share on revenue of $2.27 billion to $2.34 billion. Analysts had expected earnings of $5.83 a share on revenue of $2.39 billion.
The Company is scheduled to report quarterly results on October 24.
Separately, Outerwall said that intends to repurchase another $100 million worth stock. The Company expects to commence the program (shares buyback) during an open trading window in the fiscal fourth quarter. So far in the third quarter, the Company has repurchased shares worth nearly $24 million.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht. |