real-time news and commentary for investors
Monday, Sep 16
Outerwall cuts Q3/2013 guidance, shares halted
- Outerwall (OUTR) now expects Q3 revenue of $569M-$589M and EPS of $0.82-$0.94, below prior guidance of $604M-$630M and $1.36-$1.51, and a consensus of $609.4M and $1.45. (PR)
- 2013 guidance has been lowered to $2.274B-$2.339B and $4.72-$5.12, below prior guidance of $2.372B-$2.475B and $5.76-$6.26, and a consensus of $2.38B and $5.91. Full-year free cash flow guidance has been lowered to $170M-$188M from $211M-$227M.
- CEO J Scott Di Valerio: "Although both rentals and revenue for Redbox increased significantly in July and August over 2012 levels, they were not to our expectations. In addition, heightened promotional discount activity, which added new customers during the quarter, had an adverse impact on the expected average transaction size and we believe drove consumers toward more single night rentals."
- The company adds it plans to buy back another $100M worth of shares starting in Q4, on top of the $100M it has already committed to repurchase. Outerwall has bought back $95M worth of shares thus far in 2013.