Blockbuster Beats Estimates

First-quarter earnings easily exceed forecasts, excluding an accounting charge.

Author:: Tim Arango
Publish date:: Apr 24, 2002 9:43 AM EDT

Blockbuster

topped Wall Street's expectations for the first quarter, helped by strong demand for video game and DVD rentals.

The video rental chain reported earnings of 37 cents a share, up 37% from a year ago and 9 cents better than the consensus estimate of 28 cents a share, according to Thomson Financial/First Call. Revenue was $1.33 billion, compared with $1.3 billion in last year's first quarter. Analysts had been expecting revenue of $1.28 billion.

These figures do not reflect a change in how the company accounts for amortization of goodwill. The company reduced goodwill by $1.82 billion to comply with changes in accounting standards. Including this, Blockbuster reported a net loss of $1.75 billion.

Blockbuster said it expects same-store sales to grow in the low-single digits in the second quarter, and for profit to grow in the mid-single digits. Capital expenditures are expected to be $150 million to $175 million for the full year, a $55 million to $80 million jump from last year.

The stock closed at $24.51 Tuesday.