Tag Archives: outr

Redbox parent raises red flag as CEO resigns

Shares of Redbox parent Outerwall (OUTR) tumbled Tuesday after the company announced that Scott Di Valerio has stepped down as CEO and resigned from the board, a major red flag coming just two weeks before Outerwall is due to report Q4 earnings. Outerwall was down 17% in midday trading in the stock market today, at a two-month low near 64.50. Outerwall narrowed its fourth-quarter guidance at or above its previous guidance range to assuage investors. It now expects Q4 sales of $598 million to $602 million and earnings per share from continuing operations of $2.40 to $2.52. Based on the midpoint of its guidance, EPS would be up 46% to $2.46 and sales would be up 1% to $600 million. Analysts polled by Thomson Reuters were modeling Outerwall to earn $2.06 a share on sales of $596 million. Outerwall is scheduled to report Q4 earnings after the market close on…

Redbox tells DVD movie renters to dig deeper

Looking to get more green from its existing customers, Redbox is hiking the price for renting movies from its kiosks starting Dec. 2. Redbox parent Outerwall (OUTR) on Monday announced new daily rental prices for DVDs, Blu-ray Discs and video game discs in the U.S. Starting next week, the daily rental rate for DVDs will increase from $1.20 to $1.50, and the daily rental rate for a Blu-ray Disc will increase from $1.50 to $2. Beginning Jan. 6, the daily rental rate for video games will increase from $2 to $3. The new prices were chosen after several months of market testing, Outerwall said in a press release. The price hikes translate to a 25% increase for DVD rentals, a 33% increase for Blu-ray Discs and a 50% increase for video games. Investors cheered the higher prices. Outerwall was up 7%, near 68, in morning trading in…

Redbox Q3 profit growth surprises, adds loyalty program

Outerwall squeezed more profit from its Redbox DVD-rental kiosk business in the third quarter, cheering investors who have been down on the stock lately. Outerwall (OUTR) stock was up more than 11% in afternoon trading on the stock market today, near 63, a more than four-month high. The company, which also operates Coinstar coin-counting kiosks, hit an all-time high of 74.30 on March 5 but since then has fallen below 52 on concerns about its maturing Redbox business. Late Thursday, Outerwall reported Q3 earnings that beat expectations. The Bellevue, Wash.-based company earned $1.44 a share minus items, up 29% year over year and topping Wall Street’s target of $1.11. Outerwall sales dipped 6% to $553 million, short of the $555 million forecast. “Our focus on managing Outerwall for profitability is driving tangible results,” Outerwall CEO Scott Di Valerio said in a statement. Redbox revenue dipped 11% year over year to…