Coinstar Shares Whacked on Disappointing Outlook
Shares of Coinstar were walloped in after-hours trading after the company released disappointing preliminary earnings.
Shares fell more than 30 percent in late trading Thursday. The Thursday close price was $56.95. Get after-hours quotes for Coinstar here.
The operator of coin-counting kiosks and "redbox" self-service DVD rentals now expects fourth-quarter earnings from continuing operations in the range of 65 to 69 cents per share on revenue of $391 million, missing estimates. The company also lowered its 2011 guidance.
According to data from Thomson Reuters, analysts on average expected earnings of 84 cents a share on revenue of $427 million.
The company cited lagging performance in its redbox kiosks for missing estimates.
"Overall, the performance of the redbox business during the fourth quarter was not in line with our forecast. This was redbox's first holiday season with 28-day delayed titles, and we underestimated the impact that the delay would have on demand during the fourth quarter," said Paul Davis, chief executive officer of Coinstar.