Movie Gallery Guides Higher - TheStreet

Movie Gallery Guides Higher

The company also says second-quarter same-store sales were better than expected.
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Movie Gallery

(MOVI)

said same-store sales for the second quarter rose 6.5%, beating the company's original expectations and leading the owner of video-rental stores to raise its earnings guidance.

The company had expected low- to mid-single-digit growth. Movie Gallery now expects second-quarter earnings of at least 26 cents a share. The estimate includes 2 cents a share related to noncash stock option compensation expenses and 3 cents for an accounting change.

Movie Gallery said earnings before items should be 31 cents or more, compared with the previous forecast of 26 cents to 29 cents. A year ago, the company earned 18 cents, or 27 cents excluding items.

The company plans to release its financial results for the second quarter on Aug. 5.

Analysts polled by Thomson First Call are expecting Movie Gallery to earn 29 cents on revenue of $153 million in the second quarter.