NEW YORK (
is taking a hit after issuing a disappointing outlook for the fourth quarter.
The company, which operates coin-counting machines and Redbox DVD kiosks, said it expects fourth-quarter earnings in the range of 57 to 67 cents per share with revenue between $485 million to $510 million. This guidance was softer than analysts' estimates of 77 cents per share on revenue of $482.3 million.
For the full year, Coinstar sees earnings of $3.15 and $3.25 a share and revenue between $1.81 billion and $1.84 billion. The EPS view is above the current consensus estimate of $3.10 a share because the company's third-quarter profit blew analyst expectations out of the water.
Coinstar reported earnings of $37.1 million, or $1.18 a share, on revenue of $465.6 million for the September-ended period, ahead of Wall Street expectations for a profit of 88 cents per share on revenue of $462.1 million.
The company also announced it is raising its standard DVD rental fee to $1.20 per night from $1, effective on Oct. 31.
Shares of Coinstar tumbled more than 12% in after-hours activity.
Reported by Jeanine Poggi in New York.