Outerwall (OUTR) fell through the floor late Monday after the company cut its full-year guidance, canceled a new business initiative, and announced a leadership change to its core Redbox DVD rental unit. Outerwall stock was down 24%, near 44, in after-hours trading Monday on the news. It ended the regular session down 2%, at 58.06. The Bellevue, Wash.-based company blamed weaker-than-expected results from its Redbox movie kiosk business for the
Redbox parent Outerwall (OUTR) late Thursday beat Wall Street’s profit target, but missed on sales. Shares of the automated retail kiosk operator fell Friday as DVD rental volume continued to decline. In the September quarter, Outerwall earned $2.21 a share excluding items, up 53% year over year, on sales of $512 million, down 7%. Analysts polled by Thomson Reuters expected Outerwall to earn $1.63 a share on sales of $538 million. It was the
Apple’s (AAPL) iPhone Upgrade Program and similar smartphone trade-in programs from wireless carriers are poised to put the hurt on Outerwall’s (OUTR) struggling ecoATM venture. The ecoATM business uses automated self-service kiosks to buy back old phones, tablets and MP3 players for cash. It then resells the used devices. But the trade-in programs from Apple and its carrier partners are likely to greatly reduce the supply of used iPhones