Seeking Alpha

Outerwall resumes trading, shares -20.3% AH

  • Following its warning, Outerwall (OUTR) is trading at $44.60, down 14% YTD and not far removed from its 52-week low of $40.50.
  • The company promises net revenue per rental will grow in Q4 after dropping in Q3, as it "adjusts" its Redbox promotional strategy. However, rental expectations for the quarter have been cut by 6.5M units; Outerwall blames shifts in movie availability dates to later in Q4 or early 2014.
  • Outerwall also says it will "align its cost structure," and will "accelerate" its review of its New Ventures initiatives, which include its ecoATM electronics recycling kiosk business, "to ensure they provide the appropriate level of risk adjusted returns."
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Comments (8)
  • Tvaddic
    , contributor
    Comments (250) | Send Message
     
    Im not watching this stock, just seeing what applies any competitive pressures to NFLX, but it seems they blame poor Redbox reports on DVD availability every single quarter, and say next quarter will be better.
    16 Sep 2013, 05:07 PM Reply Like
  • movies555
    , contributor
    Comments (828) | Send Message
     
    I don't understand the appeal of what is basically a vending machine company with a streaming video service. As for the vending, I don't think they're doing anything particularly innovative, especially given a time period where the vending industry is noticeably evolving.
    16 Sep 2013, 05:16 PM Reply Like
  • Esekla
    , contributor
    Comments (3112) | Send Message
     
    Ok, who do you think is out-innovating Outerwall?
    16 Sep 2013, 05:34 PM Reply Like
  • Ptrmolinari
    , contributor
    Comments (167) | Send Message
     
    Another cheap stock with a propensity to miss quarters..
    16 Sep 2013, 05:33 PM Reply Like
  • SEEKERMAN
    , contributor
    Comments (2) | Send Message
     
    They Should have done this already:
    align its cost structure," and "accelerate" its review of its New Ventures initiatives, which include its ecoATM electronics recycling kiosk business, "to ensure they provide the appropriate level of risk adjusted return.
    16 Sep 2013, 09:41 PM Reply Like
  • PSound
    , contributor
    Comments (237) | Send Message
     
    They are suffering from a secular decline in optical discs.
    17 Sep 2013, 12:06 AM Reply Like
  • PSound
    , contributor
    Comments (237) | Send Message
     
    For more data on the secular declines in optical disc rental, review the comments from this article:

     

    http://seekingalpha.co...
    17 Sep 2013, 12:35 AM Reply Like
  • hitekmastr
    , contributor
    Comments (31) | Send Message
     
    Tsk, tsk - too bad. I like the stock and have invested (long) in the past, but Outerwall is at the mercy of the movie industry and their release schedule, which did not favor them this quarter. With most hot movies coming out later in the 4th quarter, the earnings from rentals may not show up in 4Q but may actually be booked in 1Q 2014. Too much uncertainty, short term.
    18 Sep 2013, 12:57 PM Reply Like
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